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Bank of America Corporation Message Board

  • fairvalue23 fairvalue23 Jan 21, 2013 10:07 AM Flag

    Spain Recession Scars Exposed as Jobless Hit 6 Million

    Spain Recession Scars Exposed as Jobless Hit 6 Million
    Spain’s scars from the slump that overshadowed Prime Minister Mariano Rajoy’s first year in office will emerge this week as data show the toll on economic output that may have kept as many as 6 million people out of work.
    Spanish exports fell 0.6 percent in November from the same month the previous year, when they had risen 7.4 percent, the Economy Ministry said today. House-price data tomorrow will show if the property market endured a fourth year of declines. The Bank of Spain may also release its estimate for fourth-quarter gross domestic product, and the data will culminate in jobs figures on Jan. 24, forecast by economists to show a record 26 percent of Spaniards unemployed.
    Officials predict the euro-area’s fourth-biggest economy faces a further slump this year at a time when the government will struggle to meet its budget goals. Such a backdrop hasn’t deterred investors, with the prospect of a European Central Bank backstop in the event of a bailout enabling the Treasury to fast-track higher 2013 funding needs, selling 16 billion euros ($21 billion) at its first three auctions at lower costs.
    “Unemployment will continue to rise this year,” said Sara Balina, an analyst with Madrid-based consultancy firm Analistas Financieros Internacionales. “Demand will deteriorate and outweigh the positive contributors to growth that are tourism and exports.”
    Spanish Bonds
    Spanish two-year bonds declined, pushing the yield up four basis points to 2.53 percent at 12:45 p.m. Madrid time. The nation’s 10-year bond yield was up three basis points at 5.11 percent, compared with a euro-era record of 7.75 percent in July. The spread with similar German maturities was 3.52 percentage points.
    Unemployment probably rose to 26 percent of Spain’s active workforce in the last quarter, reaching 6 million unemployed, according to a median of 10 estimates in a Bloomberg survey. One-in-three of all jobless in the euro zone are in S

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