Free Submission Public Relations &
Deutsch English

Spain Business Forecast Report Q1 2013

Spain Business Forecast Report Q1 2013 - new country guide report published

Print article Print article
2012-12-14 14:56:13 - Spain Business Forecast Report Q1 2013 - a new country guide report on

We believe the EUR100bn bank rescue announced in June will mark the first of many external bailouts for the Spanish economy, and in light of the rapid worsening of financing conditions in recent months, we expect Spain to receive a full-blown sovereign bailout in the next six months or so. Alongside the continued deterioration in economic activity and confidence across the eurozone, this underpins our dismal outlook for the Spanish economy over the next few years. All components of GDP by expenditure are set to suffer given the pressures facing the housing, banking, fiscal and external sectors of the economy.

In light of the depression scenario envisaged for the domestic economy over the next few years as well as the prospect



of continued aggressive fiscal austerity, we expect Spain´s external asymmetries to continue narrowing over the medium term, even taking into account lacklustre demand for Spanish exports from abroad.

Spain´s crisis appears to have accelerated since Prime Minister Mariano Rajoy came to power and this is at least partly the result of weak, and at times delayed responses by the political leadership to the country´s economic woes. With a eurozone sovereign bailout for Spain looking unavoidable, fiscal austerity unlikely to moderate, and a lost decade ahead for the domestic sector, we believe the People´s Party will find it difficult to arrest the decline in its popularity, leaving re-election in 2015 looking highly unlikely.

Key Risks To Outlook

The biggest domestic risk to the Spanish economy is that the government pursues over-aggressive fiscal austerity. If the government is forced to introduce even greater spending cuts and tax hikes over the next few years owing to financial pressures from abroad, the ultimate effect on the government´s fiscal position could be even worse given how weak the domestic economy already is.

The weakening economic picture in the wider eurozone presents a huge threat to the Spanish economy. Macroeconomic conditions could worsen significantly from current levels in the common currency bloc should there be little to no progress on the financial/banking integration front, and this would in turn prompt us to reassess Spain´s growth potential in the medium-term.

Click for report details: ..

Browse all All Sectors Country Guide Reports ..

Browse all All Sectors Company Profile Reports ..

Browse all Latest Country Guide Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Mike King
Phone: London: +44 (0) 203 086 8600

Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release.
Latest News
Read the Latest News


Terms & Conditions | Privacy | About us | Contact | BidVertiser