BBVA predict high unemployment levels in Spain for 2 more years

 

Spain's BBVA has stated how the country will experience a further 2 years of high level of unemployment, regardless of improving economic conditions. Analysts working for BBVA do not expect unemployment to fall below 20% until at least 2013.

Even though the bank expects growth of 0.9% to the economy, which could boost as many as 100,000 jobs, it won't be enough to have a big enough effect on the country's incredibly high unemployment rate.

This could be problematic with regards Spain's economic recovery. If the level of unemployment remains this high, spending overall remains low, and revenues remain small, the government will continue to struggle with its financial condition.

Spain's unemployment is currently the worst in the developed world and the highest seen in Spain since 1966.