The green shoots of recovery reported in France and Germany are yet to be seen in Spain with the country locked in the throes of recession.
According to Spain’s National Statistics Institute, the economy shrank by one percent in the second quarter, compared to the previous three months. It is the fourth consecutive quarterly contraction of the economy, and is due principally to a decline in consumer demand. But financial analyst Daniel Alonso was optimistic. He said: “Consumer confidence and demand aren’t as strong as other countries’ but better figures regarding employment will see Spain follow other countries in the next quarters.” Better? Battling the highest unemployment rate in Europe at 18 percent, Spain has pumped money into the economy and is putting builders to work on public projects across the country. Meanwhile, France has posted mixed unemployment figures. Jobs continued to be cut in the private sector in the second quarter but the rate has slowed sharply.