BBVA forecasts a grim 2012

 

Spain's Banco Bilbao Vizcaya Argentaria (BBVA), the country´s second largest Bank by assets, has reported how it is expecting to see a continued stubborn growth for the domestic economy during Q4 of 2011, with the likelihood of falling into a renewed economic slump in 2012.

The increasing problem of Spanish unemployment and the lack of demand of Spanish goods from overseas, makes it more than likely that the country will slip into a further, deeper recession.

Other factors which suggest this as being a possibility are the weakening demand on local products, the tension in global markets, low investor confidence and the growing size of eurozone debts, all of which would lessen Spain's chances of achieving growth and reviving its economy.

The Bank of Spain has also reported a slim annual growth rate of just of 0.8%.

The Central Bank had previously reduced its official growth expectations for this year, from 1.3%.