According to a statement by a senior official from the Economy Ministry on Monday, Spain’s economy will not be successful in registering a full-year growth in the coming year, and the overall contraction in the country’s GDP could be as much as 0.6 percent.
In an interview conducted by Expansion, a financial newspaper, Spain’s Economy Secretary Jose Manuel Campa said that the GDP in 2010 could deviate either up or down from the earlier forecast of -0.3 percent, and may vary from 0 percent to -0.6 percent, with a positive or negative deviation of 0.3 percentage points respectively. He also added that the GDP for the final quarter this year may lie between 0 and -0.3 percent.
The minister also said that the job market is not likely to see a revival before 2011, and the government will introduce a labor reform in January next year to cut down on the huge number of temporary contracts in the country’s economy.
Spain’s economy, which has been receding for the past five quarters since the global slowdown hit the country, is not expected to come out of contraction before the first half of the coming year.