The Bank of Spain and the International Monetary Fund (IMF) each published reports yesterday indicating that the recession reached its worst point during the last quarter of 2012. The IMF lowered its predictions for Spain?s GDP growth in 2013, estimating a drop of 1.5%.
Still, the Bank of Spain assures that 2012 GDP (-1.3%) fell two percentage points less than the government predicted despite various cutback measures that weighed on consumer purchasing. This year budget cutbaks will continue, and new major reforms will get under way. The private sector is starting to experience some effects of the measures that government has adopted, and this could mean that the end of the year takes a turn for the better.
