The Spanish economy entered an official recession in the first quarter of the year after its GDP fell by 0.4%. The worst aspect is that its unemployment level is nearly 24%.
Will will happen in the next few months? It is possible that budget cuts have made their impact, because new reforms have already gone into effect, but there will still be a lack of liquidity and credit, which could lead to a deeper recession over the next two quarters.
Experts look to the last quarter of 2012 for improved figures, but there are plenty of doubts that jeopardize their predictions risk and make us question where a prolonged crisis could take the country.
It is necessary to continue with reforms and regain confidence with action, not just rhetoric. The problem is that time is working against us and there is little stimulus to get out of the rut we are in.
