Sinking with the Spanish state
According to the Bank of Spain, the default rate of the Spanish state has broken a new record, reaching 10.5% of the loans managed by Spanish banks. What’s more, in accordance with the predictions made by the consultancy firm Ernst & Young, the GDP of the Spanish state will contract 1.5% in 2012 and 2% in 2013. This London-based firm also foresees that unemployment will reach 26% in 2014. Even IMF oracles certify the most negative of predictions: the runaway Spanish public debt will exceed 100% of the Spanish GDP in 2014.
Thus, on the one hand we can confirm the acceleration of the Spanish Great Recession, and on the other, we can attest to the lack of realism in the growth predictions carried out by Mariano Rajoy’s government, which predicts a modest contraction of 0.5% of Spain’s economy for the coming year and a chimerical growth of 1.2% in 2014. Once again, the PP government is trying to fool the citizenry, pushing through surreal public budgets and, as it happened with the elections in Andalusia, insisting on waiting to ask for a second European bailout until after the elections in Catalonia.
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