No Green Shoots of Recovery

08/05/2012 Worldwide

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No Green Shoots of Recovery

Spain entered 2012 with negative growth of -1.6 percent of GDP in the first quarter, confirming a W-shaped recession, says Prof. Javier Díaz-Giménez. We can only hope that the second loop of the W won’t be as deep and long as the first, he says. The forecast for 2013 is deteriorating and there won’t be any significant growth until 2014.
Spain's economy is still failing to show signs of recovery, with negative growth rates reported during the first quarter of 2012, says IESE Prof. Javier Díaz-Giménez of the Department of Economics. The latest data confirm a "W"-shaped recession, with social security affiliation rates mirroring these negative GDP growth rate trends.
 
Forecasts for 2013 are also looking grim, with little expectation for growth in Spain until 2014. The employment rate may begin to gradually pick up then, with unemployment rates finally decreasing in the wake of this, he says.