Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

28 September 2010

El País: BBVA believes that the Spanish economy has "bottomed out"


Default: Change to:


The BBVA Research Department estimated that GDP will grow by almost 0.2% in the third quarter, slightly above their estimates, according to its latest report on Status and prospects of the Spanish economy.


The BBVA emphasizes that there has been a "significant" deterioration of GDP for the third quarter, because, although the consumption and investment have suffered through the process of fiscal consolidation, the magnitude of this adjustment has not been sufficient to have effects on employment, whose evolution is still similar to that of the second quarter.
Indeed, this behavior of employment, together with the data from consumer confidence and business, "better than expected", leading to BBVA to raise its GDP growth forecast for the third quarter, putting it closer to 0.2 % to 0.1%.
BBVA says that there are several factors influencing this recovery, including the adjustments experienced by businesses and households, and adjustments to the financial sector. For the entity, mergers in progress, the new LORCA (Savings Banks Law) and resistance tests are "breakthroughs" in the process of restructuring the Spanish financial system.
 
 




< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment