Spain: Unemployment to approach 20%

Output is projected to fall by 4.2% in 2009, with the rate of decline slowing as the year progresses, and by 0.9% in 2010. The unemployment rate will reach about 20% in 2010, and inflation will fall to near zero.

The government deficit is projected to reach 9.6% of GDP in 2010.

Fiscal policy should remain neutral in 2010. Small financial intermediaries with solvency problems should be allowed to fail, which would limit the fiscal costs of interventions. Programmes to support construction of social housing should be halted: support to low-income households should be provided via means-tested cash benefits earmarked to the housing costs. Scope for the savings banks to raise equity from private external sources should be expanded and barriers to mergers removed.

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See also www.oecd.org/spain

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©OECD Observer No 274, July 2009




Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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