According to an announcement by the Bank of Spain on going increases in unemployment, and a slowdown in business activity are beginning to wane, and Spain may be turning a recession corner,
The bank recognises that there needs to be a drastic increase in consumer consumption, which will also require a large boost in national financial confidence.
The report does not say that the financial problems have not ended, but only that it is declining at a slower rate. This has resulted in what the government euphemistically calls a “less negative” atmosphere.
They note that the main victims in the workplace are those that are working on temporary contracts. These are the largest group who benefit from the multitude of summer months jobs available in Spain, although of course these jobs have now mostly come to an end for 2009.
The bank believes that between now and the end of the year the rate of decline will be the equivalent of the second quarter and will hover at around 5%.