The OECD (Organisation for Economic Co-operation and Development) forecasts that the unemployment rate in Spain will continue to rise in 2012 until reaching 23 per cent.
On a more positive note, the OECD predicts that the new government will be capable of adjusting the deficit to 3% by 2012 (austerity measures anyone?).
Spain’s economy is predicted to contract again in the fourth trimester of 2011 and within a year will grow by 0.7% with growth predictions for 2012 revised downwards from 1.6% to 0.3%. In 2013, predictions are that Spain will see a growth of 1.3%.
Unemployment predictions see Spain’s unemployment rate at 21.5% at the close of the year and 22.9% in 2012 with a slight decrease in 2013 to 22.7%.
Public deficit is expected to be reduced to 6.2% of GDP in 2011, 4.4% in 2012 and by 2013 down to 3%.