Spain rises out of recession in first quarter - Summary

Madrid - Spain's economy rose out of recession in the first quarter, growing by 0.1 per cent after six quarters of negative growth, the Bank of Spain said Friday.

In the fourth quarter of 2009, gross domestic product (GDP) had shrunk by 0.1 per cent.

However, the economy was still declining 1.3 per cent year-on-year, the Spanish central bank said.

The economy contracted by 3.6 per cent in 2009.

Households were now consuming more, though the overall consumption level remained weak, according to the bank bulletin.

Investments were also slow due to concern over the future of the Spanish economy and difficulties in obtaining credit, the central bank said.

The figures issued by the Bank of Spain need to be confirmed by the statistics body INE, which gives the official figures.

Prime Minister Jose Luis Rodriguez Zapatero has expressed trust that the economy will soon start to recover, despite international concern that Spain could be headed for a Greek-style crisis.

Spain's unemployment surpassed 20 per cent in the first quarter, and the country has a budget deficit of 11.2 per cent.

Source: Earth Times.
Link: http://www.earthtimes.org/articles/show/322461,spain-rises-out-of-recession-in-first-quarter--summary.html.