Advertise On EU-Digest

Annual Advertising Rates

9/27/12

Spain's economy shrinks further

The Bank of Spain warned Wednesday that the country is in a deep recession, a day after clashes in Madrid between protesters and the police led to 38 people arrested and 64 injured.

The demonstrations on Tuesday evening against the government's austerity drive at a time of mass unemployment put in sharp relief the scale of discontent that's brewing in a country suffering its second recession in three years and an unemployment rate of nearly 25 per cent.

In the wake of the clashes and a warning from the central bank's that the country's economy continues to shrink "significantly," financial markets have grown increasingly nervous.
The main IBEX index in Madrid was down a hefty 2.6 per cent, while Spain's 10-year bond yield edged back up toward six per cent.

Read more: Spain's economy shrinks further - Business - CBC News

No comments: