Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

At least 3 dead in grenade attack in Bujumbura

Read more

MEDIAWATCH

Inequality, sexism and the movie industry

Read more

ENCORE!

Sienna Miller on motherhood, her new movies and Cannes glamour

Read more

THE WORLD THIS WEEK

After the Fall of Ramadi, Palmyra: Did the West Underestimate the Jihadists?

Read more

THE WORLD THIS WEEK

Migrants and Immigrants: A Global Crisis

Read more

FRANCE IN FOCUS

Behind the scenes of French gastronomy

Read more

EYE ON AFRICA

Protests continue in Burundi as calls mount for election delay

Read more

EYE ON AFRICA

Burundi: Nkurunziza delays parliamentary polls as clashes continue

Read more

EYE ON AFRICA

At least two killed in fresh protests in Bujumbura

Read more

Business

Economy set to stay in recession until 2010

Text by NEWS WIRES

Latest update : 2009-06-13

Spain will remain in recession until 2010, with the country due to shrink 3.6 percent in 2009, two percent more than previously forecast.announced. Economy Minister Elena Salgado said the unemployment rate will remain high until 2012.

AFP - Spain more than doubled its estimate of contraction in the economy this year to 3.6 percent from 1.6 percent forecast previously, in an estimate on Friday.

Speaking after a cabinet meeting, Economy Minister Elena Salgado also said that the government expected the economy to shrink by 0.3 percent next year, recovering to growth of 1.8 percent in 2011 and 2.7 percent in 2012.

She forecast the country's public deficit, which comprises the central government budget, social welfare budgets and local authority finances, would equal 7.9 percent of gross domestic product in 2010 and 5.2 percent in 2011.

These figures are well above the limit of three percent set by European Union rules.

She said that the unemployment rate, which has shot up since the beginning of the economic crisis, would remain high for several years, at 17.9 percent this year, 18.9 percent next year, 18.4 percent in 2011 and 17.1 percent in 2012.
 

Date created : 2009-06-12

COMMENT(S)