This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Spain's Recession Deeper Than Thought

MADRID (AP) â¿¿ Spain's recession is worse than thought after official figures Wednesday showed the country's economy shrank 0.7 percent in the fourth quarter of 2012 from the previous three-month period.

The figure from Spain's National Statistics Office was higher than last week's 0.6 percent estimate from the Bank of Spain and provides further evidence that the economy is hobbled by its high level of debts and sky-high unemployment as well as the government's raft of austerity measures.

Spain's economy, which is the fourth-biggest of the 17 European Union countries that use the euro, has been shrinking for the last 18 months and unemployment stands at a heady 26 percent.

The statistics department said economic activity was down 1.8 percent in the fourth quarter from the year-earlier period. For the whole of 2012, it shrank 1.4 percent. The fourth quarter decline was also more than double the 0.3 percent drop recorded in the previous quarter.

Europe's main statistics office Eurostat unveils its estimate for the eurozone and the wider 27-country EU on Feb. 14.

While struggling with recession, Spain's central government and its regional administrations are under fierce pressure to reduce bloated deficits to convince European authorities and investors the country can manage its finances alone. To do this they have cut spending and sought to clean up a banking system laden down with toxic property assets left over from the crash in 2008.

On Tuesday, Catalonia, whose capital is Barcelona, said it was seeking ⿬9 billion ($12.1 billion) this year from the central government's ⿬23 billion rescue fund for troubled regions. It said most would be used in servicing debt. Catalonia needed ⿬5 billion in 2012 while eight other regions took ⿬8 billion from the fund, which totaled ⿬18 billion last year.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs