The Latest Spanish Property News from Kyero.com
October 30th, 2009
The Savings Bank Foundation, FUNCAS, warns that economic recovery will be mediocre and employment will not be created until 2011.
Director, Angel Laborda said, during a conference on the current situation of Spain against the global economic crisis, that the growth in Gross Domestic Product (GDP) will take a lot to achieve rates of 3% and may provide the first positive numbers in the spring of 2010, although he predicted that this year it will end in recession with a GDP decline of 1%.
In this regard, he said that the problem is that the crisis in Spain is lasting longer than in other countries around Europe.
He said job growth will not be significant until the second half of 2011 and the unemployment rate will peak in the third quarter of next year, to 20.5%, resulting in 4.5 million unemployed.
Therefore, he criticized the minister of Finance, Elena Salgado, as she had announced green shoots in the second quarter of this year, when she was rushed to talk about them.
He estimated that the service sector will be the niche in job creation from 2011, the industry will soon recover and that the Spanish property market will be in negative rates for many years.
Laborda also warned of the medium term problem the huge hole in the public deficit, which he said will cause problems in the medium term in the Spanish economy.
He said sooner or later will have to endure a tax increase to bring back the deficit of the state bordering on 10% of GDP. According Laborda, 2010 will be a difficult year for businesses, and the cost of capital and labour will continue to weigh on the balance sheets.
Story from Barcelona Reporter
Is any property below €50,000 a cheap Spanish property? Are cheap Spanish properties only to be found at auction or as bank repossessions? How much below market value does a Spanish property need to be to be considered cheap?
Continue reading: What IS cheap Spanish property?
