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11 November 2011
Spanish economy stagnates
Euronews.net - The latest government figures show no increase in gross domestic product from the previous quarter and expansion of just 0.8 percent from the same period last year.
That calls into question the government’s ability to achieve its deficit reduction target for this year, pushing the euro zone’s fourth largest economy closer to recession.
Austerity measures implemented to help Spain bring its deficit within European Union limits and retain the confidence of financial markets have stifled growth, while tax revenues are down in an economy blighted by chronic unemployment.
The outlook for the next quarters remains bleak, with the euro zone debt crisis set to dampen growth in the region and the likely winners of the upcoming Spanish general election promising more spending cuts.
