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Spain GDP expected to grow 1.6 pct over 2011
The Gross Domestic Products figures for Spain decreased by 0.2% over the course of 2010, a slight improvement on the government's estimate of 0.3%, a government official was quoted as saying yesterday.
If the Country's troubled construction sector were to be excluded, Spanish GDP would actually have increased last year by 1.6 %, according to the secretary of state for Economy, Jose Manuel Campa.
The worldwide economic downdurn has perhaps hit Spain harder than most due to the consecutive collapse of the decade-long property boom.
Spain's central bank intends to issue its financial report for 2010 over the next few days, however the official numbers from the INE (National Office of Statistics) are not scheduled for release until Feb. 11.
Prime Minister Jose Luis Rodriguez Zapatero's Socialist government still forecasts that the country's GDP will grow by 1.6% over 2011, positioning the Spanish economy to continue with a yearly growth of between 2 and 3%, Campa said.
Recent reforms, including a pension overhaul announced just last week, is expected to enable Spain to enjoy "more sustained growth in the long term" than it has in the last decade, Campa continued.
The agreement over pensions was finalised as latest figures showing how Spain's unemployment stood at more than 20% percent at the end of last year, the highest rate in over a decade. The number equates to 4.7 million currently unemployed, which marks Spain as having the worst unemployment figures in the developed world.
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