This page has been archived and commenting is disabled.
Contrary To Prior Lies, Spanish 2013 Economic Contraction Even Worse Than In 2012
The Bank of Spain just sent a stark message. In its annual update of economic forecasts, it estimates Spain's economy will shrink 1.5% in 2013 - that is three times as bad as the official government forecast of -0.5%. As Reuters reports, this is even worse than 2012's 1.4% contraction as the bank notes that, Spaniards "remain immersed in a process of deleveraging...and families have seen a notable shrinking of income." The GDP estimate is around consensus which was roundly ignoring the Spanish government's 'lying' optimism but under the cover of the Cyprus debacle, the Spanish have been pushing to ease their deficit restrictions as the deficit is expected to reach 6% in 2013 (well above the 4.5% target set by the EU). With unemployment expected to rise over 27.1%, we suspect youth unemployment will once again take center stage as the European Union's scariest chart.
Spain's economy will sink deeper into recession this year, the Bank of Spain said on Tuesday, sending a stark message to the government as it prepares to revise its own growth forecast.
In its annual update of economic forecasts, the central bank said it saw Spain's economy shrinking by 1.5 percent in 2013 following a 1.4 percent contraction last year as austerity continues to exacerbate the effects of a burst property bubble.
The central bank's new estimate is well below the official forecast for a 0.5 percent contraction in GDP, although the government is widely expected to revise the 2013 figure downwards in April.
...
"Private agents remained immersed in a process of deleveraging, families have seen a notable shrinking of income, public accounts continue on their path toward sustainability and residential investment has not yet hit bottom," the bank said.
...
Unemployment is likely to hit another record high of 27.1 percent in the course of the year, the central bank said, up from a current 26 percent, one of the highest rates in the euro zone.
The bank also said the public deficit would reach 6 percent of gross domestic product for 2013, above targets set by Europe of 4.5 percent of GDP this year, and 5.9 percent of GDP in 2014.
...
»
- 9808 reads
- Printer-friendly version
- Send to friend
- advertisements -
A jai alai xistera could be a powerful rioting tool!
+1 Melee weapons, FTW.
You tank the riot police. I will stand back and yell "fireball! Fireball! Fireball!" as I throw molotov cocktails.
V>punch
Nerds.
deficit is expected to reach 6% in 2013 (well above the 4.5% target set by the EU).
Well, more is better right?
so? obama is getting a vacation a month fitting into the stereotype of a lazy black man who never had a real job. damn bush
Thank the gods he goes on vacation as much as he does. Anymore legislation like Obamacare and gun confiscation and DHS might really have a need for these armored vehicles.
video
Dude...not a problem. Spanish depositors got it covered. Cue bail-in talks in 3....2.....1
That's NOT going to happen anytime soon! According to the "Dijsselboem Doctrine" another Template (like in different from Cyprus) must be devised first.
Yes, a template which is differently the same.
Same same but different!
Currency
Which is the lie?
They also predicted that the Cyprus economy will return to growth in 2013.
Yes, crime is about to skyrocket.
Patience, man. The banks aren't even open yet. You just wait until they are...there is going to be growth pouring out the wazoo, I tells ya.
It's already being reflected in labor markets in Cyprus, where last week, baristas were being paid 100 BoC shares per hour, this week I'm hearing 500 Laikia shares per hour.
They say we'll see 'growth' but they mean 'a growth.'
If you won't fight the bankster/globalists then starve you Spanish cowards.Long live the revolution.
It's a race to the bottom, with a sinking global Econ. and a lunatic Fed chairman.
Lunatic Ben...we all know you're out there (cue siren guitar solo)
Red Rider, circa 1981
(it's weak, I know, but some of you 35+ have that tune in yer head now)
Who conjures these statistics for the Spanish government, Robert Capa?
Bernanke said he will personally lift all boats.
All lifeboats.
As to the ship of state, another story.
If you look at the numbers for bank lending in Spain it is clear that it is having its own private credit crunch party.
So the Bank of Spain may yet turn out to be an optimist.
Q: How do you know that banksters and politicians are lying?
A: The markets keep going up!
Farewell and adieu to you poor Spanish ladies.
Quint, Jaws
Moved my money out of the bank and into the stock market. It wasn't safe in the bank.
Me too...just placed all my money in the Bank of Lemmings
Can I borrow yer wheel-barrel, bub? Gotta git some stawks meeself.
For a small fee, I will be happy to recommend good stocks like facebook, apple, amazon, etc.
US equities don't care about Europe and the forthcoming banking crisis there. All they care about is 1565. Party on it's all good.
Got to get past the quarter day ,then devil take the hindmost.
The EU is a 27 state shit sandwich that will be passed on to all the other "world citizens". From here, the only deposits I make go to the toilet and Bank of Posturepedic.
The pain in Spain shall fall mainly on the [insert Spanish depositer name here]
.... insane (who continue to keep their life savings in a bank).
The drain from Spain is the eurocrats' gain.
The bane of Spain is mainly on the Main.
The pain in Spain shall fall mainly on Rajoy's reign.
The French can't be doing much better. French joblessness rises 18,400 to 3.188 mln | FxBriefs.com
I work for a global consumer products firm. It has (very secret) plans to pack up shop in France and Monaco and move production into Spain.
Timetable is 2015.
The industry is traditionally French.
Just saying.
More proof that without a devaluation (i.e., leaving the euro), Spanish GDP will remain flat-to-negative for YEARS to come.
Southern Europe is experiencing what the U.S. did from 1930-1933: the unremitting pressure of being crushed by a strong currency.
Nope. Not correct on either front. It is about debt and leverage within governments and banks. This was policy, not money. You want to know how to prove it? Printing money doesn't solve the problem. Debt default, reduced government spending, and reduced banking leverage solves the problem. You know what forces that? Gold.
The U.S. ran surpluses and paid down debt throughout the 1920s.
You don't have a clue, boy.
Yeah. Actually I do have a clue.
The further we go back into history, the more we see personality disappearing beneath the wrappings of collectivity. And if we go right back to primitive psychology, we find absolutely no trace of the concept of an individual. Instead of individuality we find only collective relationship or what Lévy-Bruhl calls participation mystique (Jung, [1921] 1971: par. 12).
The individual is dead, but who cares, Draghi will do all it takes, and the multi-asset boys will keep on swinging.
I 'herd' that! Does being in the Jung herd mean one is no longer an individual?
Oooops, that expected unemployment rate is worse than the adverse scenario (probability less than 1 percent) in that Oliver Wyman stress test. Let's hope that the house prices only drop 4.5 percent and the Ibex only loses 5 percent. Otherwise it would appear that those stress test was a joke.
Devalue via capital controls, easy.
Right, create scarcity. It's genius!!!
What happens when the Banks do not open? To the rest of Euro-peon banks? Banks permanently closing should send some shivers.
Duh!!!
What is underway in Europe is an energy crisis not a 'finance' or 'banking' crisis. As such, the crisis will not end, nor will there be any 'recovery' only more countries falling into the pit as the managers attempt to promote more of what has caused failure in the first place:
Non-remunerative energy waste = car driving.
15 million euro-barrels per day, folks, out the tailpipe ... for nothing- as in zero returns. Every barrel bought at a massive cost ... funds to pay for that oil have been borrowed ... trillions of euros.
The longer conservation is put off ... the more funds are invested in the status quo ... the more total the ultimate collapse will be.
Energy crisis: Peak oil is real, the physical peak has occurred already and the consequences are being felt right now.
The "Peak Oil" goal line has been moving since the '70's - give yourself a rest and stop running back to take the last failed "Peak Oil" end of times prediction and move it just in front of what's occurring...
The true culprit in any current energy discussion is the bogus global warming crowd. They distracted the world from focusing on sound practical energy policies by pushing their "green" agenda BS and fairytale energy sources - and now, that detour is having severe economic impact.
People love their vehicles and the mobility/freedom they provide. They will be around long after you and I exit the scene and will continually become more technologically efficient and less of a burden on the environment. Co2 fear (of global warming fame) is a complete myth: https://www.youtube.com/watch?v=S-nsU_DaIZE
I like and enjoy your posts, just couldn't take the "Peak Oil" "Automotive energy waste" drum beat (pun intended) anymore...
Sorry - Mk
And by bungling the Cyprus bail-in, Spain will have to 'recover' in a 2013 year that will now include runs on its banks!
Spanish growth is for Cub fans. Both have to wait til next year. :)