The Takeaway: the Spanish GDP drops 0.3% for the first quarter of 2012, as expected-> severe austerity measures set for 2013-> Euro consolidates lower annual
The Spanish economy decreased during the second quarter, as the gross domestic product in Q1 2012 reached 0.3% from the previous quarter, to meet the expectations of analysts. GDP in the first quarter was also a decline of 0.4% from the first quarter of 2011, according to the National Institute of statistics.
The ongoing economic downturn comes in the middle of the harsh austerity, Spain sets a target of cutting its deficit target budget for 2012 to 5.3% of GDP and 3% of GDP in 2013. Current austerity measures are the deepest in recent decades, but Prime Minister Mariano Rajoy fears a lack of market confidence to lend to the Spain, if the country is not severely reduce its spending.
As the Spain struggles to contain his ready confidence, his point of reference of the yields of the bonds of 10 years increased by 6.3% compared with only a 5% performance early in March.
Construction and real estate are two sectors that have experienced heavy downturn. Construction decreased by 3.1%, compared to a loss of 1.1% in the previous quarter. Real estate has slowed down 2.5% from a previous gain of 0.8%. Household spending fell 0.6% from the previous year.
EUR/USD fell following the release of the GDP, but the move could be considered more a grouping over the 1.2625 2012 low and less than a reaction to the expected economic contraction.
DailyFX provides news forex and technical analysis on trends affecting the world market currencies.
Learn forex trading with a free account of practice and exchange of graphics of FXCM.
The Spanish economy decreased during the second quarter, as the gross domestic product in Q1 2012 reached 0.3% from the previous quarter, to meet the expectations of analysts. GDP in the first quarter was also a decline of 0.4% from the first quarter of 2011, according to the National Institute of statistics.
The ongoing economic downturn comes in the middle of the harsh austerity, Spain sets a target of cutting its deficit target budget for 2012 to 5.3% of GDP and 3% of GDP in 2013. Current austerity measures are the deepest in recent decades, but Prime Minister Mariano Rajoy fears a lack of market confidence to lend to the Spain, if the country is not severely reduce its spending.
As the Spain struggles to contain his ready confidence, his point of reference of the yields of the bonds of 10 years increased by 6.3% compared with only a 5% performance early in March.
Construction and real estate are two sectors that have experienced heavy downturn. Construction decreased by 3.1%, compared to a loss of 1.1% in the previous quarter. Real estate has slowed down 2.5% from a previous gain of 0.8%. Household spending fell 0.6% from the previous year.
EUR/USD fell following the release of the GDP, but the move could be considered more a grouping over the 1.2625 2012 low and less than a reaction to the expected economic contraction.DailyFX provides news forex and technical analysis on trends affecting the world market currencies.
Learn forex trading with a free account of practice and exchange of graphics of FXCM.
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