Spain’s economy to suffer again as recession hits country
Spain’s economic woes continue to worsen, with the economy expected to shrink by 1.3 per cent this year, a slowdown that could hit Spain in the autumn.
The latest numbers from the Bank of Spain show the economy shrank by 1 per cent in the third quarter of 2016, falling below a 10-year average of 4.6 per cent.
This is down from an annual average of 7.4 per cent during the same period last year.
The country’s public debt is estimated to be €9.5 trillion ($10.9 trillion) and its economic output is expected to be 1.9 per cent lower than the previous quarter, according to the government.
The central bank says the economic contraction is partly due to the impact of the EU-Turkey deal and a fall in the value of the Spanish lira against the euro, as well as the Spanish economy’s dependence on the EU.
Spain’s economy is expected be the second-worst performer in the eurozone after Greece, and the biggest in Europe.
Spain is currently in recession, and economic growth is expected taper off by the end of this year.
It is already the lowest rate of economic growth in Europe, according the Organisation for Economic Co-operation and Development.
The government says that as of March 31, it had already made a loss of €11.2 billion ($15.9 billion) on the deficit.