The Outlook for the Spanish Economy

While it is Cyprus which currently carries the mantle of Europe’s most besieged country, there are others that have suffered continually since the onset of the eurozone crisis. Spain belong to this category, having fought against soaring unemployment and dwindling consumer confidence for more than four years. While economists have predicted that the nation’s economy will begin to grow at some point during the first financial quarter of 2014, however, the fiscal crisis is likely to worsen throughout 2013.

The recent manufacturing statistics seems to support this outlook, as factory activity and output shrank at the fastest rate since last October. While there had been initial signs during the winter of 2012 that the economic crisis was reaching a climax, the more recent portents suggest that the nation has yet to hit rock bottom. Given that the manufacturing industry accounts for more than 12% of the Spanish economy, these figures offer a telling insight into the nation’s plight. While certain forex  companies has gained profits due to Online Trading due to this down fall.

The statistics represent the nation’s 23rd consecutive month below the 50% line in terms of manufacturing output, and also highlight a steep acceleration in the rate of decline. With this in mind, it is clear that the economy is likely to contract sharply throughout the remainder of the year, at least until the final financial quarter when the rates of employment and production are likely to increase. This seems a long way off at present, however, especially for consumers and business owners who are continuing to feel the financial pinch.

Comments are closed.