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Spanish-News - Jul 24, 05:03 PM
 Sets of gloomy statistics are beginning to make the crisis within the Spanish economy a little clearer although the picture developing isn't good news.
Described by the Finance minister Pedro Solbes as "the most complex crisis we've ever seen".
A combination of oil prices, the credit crunch and a sharp slowdown in exports to North America and within the Euro-zone.
The Spanish stock-market has fallen 27% since the start of June.
The Spanish government revised downwards growth forecast of 1.6 per cent for this year and only 1 per cent for 2009, down from 3.8 per cent in 2007. Unemployment will be 10.4 per cent this year and 12.5 per cent in 2009, up from 8.3 per cent in 2007.
More than 98% of home loans in Spain are priced off Euribor, the interbank interest ratethis rate has risen almost 1.5% since August" to a record high of 5.4%.
Some Spaniards are reported to be spending nearly half their incomes on mortgage costs. House sales fell 7% in the year to April, while mortgage lending plunged 14%.
But with home values tumbling – down by 20% on last year by the second quarter of 2008 it's not just the Spaniards, but the thousands of foreigners who have bought into Spain who are feeling the pain.
Last week Martinsa-Fadesa, one of the country's largest housebuilders, was forced to file for protection from its creditors (it owes €5.1bn but can't meet the interest payments). The five largest publicly-traded property companies are sitting on combined debts of around €30bn, and Martinsa-Fadesa's fall could create a domino effect through the sector, and then the economy.
Some 750,000 properties are for sale with few buyers. Prices are expected to continue falling until the excess in the market it bought up. (2010-11?)
Inflation has risen to 5%. Car sales fell 30% in May. Vodophone reported a first reversal in growth in Spain.
With many analysts thinking the Euro is overvalued by as much as 30% against the US Dollar, pressure on the currency from mounting bad debt and fears emerging over weaker eurozone countries' credit risks.(Greece, Ireland, Italy, Portugal and Spain)
The Spanish economy may be about to fall off a cliff.
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Spanish-News -
Sets of gloomy statistics are beginning to make the crisis within the Spanish economy a little clearer although the picture developing isn't good news.
Described by the Finance minister Pedro Solbes as "the most complex crisis we've ever seen".
A combination of oil prices, the credit crunch and a sharp slowdown in exports to North America and within the Euro-zone.
The Spanish stock-market has fallen 27% since the start of June.
The Spanish government revised downwards growth forecast of 1.6 per cent for this year and only 1 per cent for 2009, down from 3.8 per cent in 2007. Unemployment will be 10.4 per cent this year and 12.5 per cent in 2009, up from 8.3 per cent in 2007.
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