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News Link • Economy - Economics USA

Spain tips into depression

• Telegraph
Two Miura fighting bulls are silhouetted against the sky at the Miura ranch near Lora del Rio, southern Spain
Bull run is over: Spain is sliding into a full-blown economic depression akin to that seen in the 1930s Photo: AP

The Madrid research group RR de Acuña & Asociados said the collapse of Spain's building industry will cause the economy to contract for the next three years, with a peak to trough loss of over 11pc of GDP. The grim forecast is starkly at odds with claims by premier Jose Luis Zapatero, who still says Spain's recession will be milder than elsewhere in Europe.

RR de Acuña said the overhang of unsold properties on the market, or still being built, has reached 1,623,000 . This dwarfs annual demand of 218,000, and will take six or seven years to clear. The group said Spain's unemployment will peak at around 25pc, comparable to the worst chapter of the Great Depression.  Finish Reading...

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