Spain’s second largest bank, BBVA, expected continued slow growth for the Spanish economy during the fourth quarter of 2011, warning of the likelihood of falling into a renewed economic slump the following year.
Given the current negative economic outlook, namely the growing problem of Spanish unemployment and the weak foreign demand of Spanish goods, the report indicated that the country was facing a new recession.
Other factors leading to the suggestion 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.
Spain’s supreme monetary body, Bank of Spain, had posted a meagre annual growth average of 0.8 pct.
Bank of Spain had recently lowered its official growth expectations for 2011, from 1.3 pct to 0.8 pct.