The number of Spanish workers out of a job has risen again to 25%, a level not seen since the dark days of Francisco Franco’s dictatorship in the 1970’s.
The data released by the National Statistics institute shows that one in four workers (5.8 million) are without a job in the third quarter of 2012, a new record high and a figure that will almost certainly rise with further layoffs likely next year. 2013 sees the implementation of a new €60 billion Euro budget austerity drive, a drive that will undoubtedly lead to even greater misery for the Spanish people.
Remarkably the Spanish government has revealed that it is optimistic that the nation will achieve growth next year, an opinion not shared by virtually all of the nation’s observers.
“There is a debate over the optimistic growth outlook for next year by the government, which is given little credibility. Weaker growth than expected, coupled with austerity, could easily see unemployment hit 26 percent next year,” said Silvio Peruzzo, economist at Nomura in London.
The Spanish government is coming under fire for its blatantly distorted official figures. The government is claiming that the nation’s economy will only contract by 0.5% whereas a poll taken by Reuters shows that it will shrink by up to three times as much! Adding to the belief that Madrid has lost the plot is that it believes Spain will leave recession in 2013, a date that seems incredibly optimistic.
This year Madrid expects the economy to shrink by 1.5% and suggests that unemployment will not fall until 2014 at the earliest.
The Pound to Euro exchange rate is currently trading at 1.2453
The Pound to US Dollar exchange rate is currently trading at 1.6115
The Pound to Australian Dollar exchange rate is currently trading at 1.5610
The Pound to New Zealand Dollar exchange rate is currently trading at 1.9677
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The Euro to Australian Dollar exchange rate is currently trading at 1.2530
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