INE stats show economy continues to stagnate

 

A continued decline in growth on exports and slump in domestic demand led the Spanish economy to stagnate in Q3, according to official figures released earlier today by the National Institute of Statistics (INE).

Q3 showed zero growth on Q2, and grew just 0.8% on an annual basis, revised from a previously reported 0.7%.

The INE went on to report how the lack of external demand had pushed overall growth down from 2.5% to 2% during Q2, while domestic demand pushed figures down to -1.2%.

The country is implementing a number of reforms and spending cuts in an attempt to restore investor confidence and persuade the financial markets that it can get it's economy back on track without the need for a bailout like Greece and Portugal.

It is the relative 'strength' of the export market alone that has prevented Spain from falling back into recession, howeve, the worsening euro zone debt crisis has taken it's toll due to the fact that almost three-quarters of all exports are to fellow Eurozone member states.

The economy of the EU as a whole increased by just 0.2% Q3 on Q2, with the European Commission expecting that the economy of the member states to contract by 0.1% in Q4 based on Q4.

Whatever the outcome of Sunday's general election, when Spanairds will go to the polls to elect a new Premier (if not a new Government), ongoing austerity measures and cuts to public spending are something which will undoubtedly effect the lives of Spaniards for more years to come.