The Spanish economy is still coping with the consequences of the housing market boom and bust. We expect weak economic growth both this year and next, leading only to a very modest decline in the unemployment rate.
Economic Update Dutch version
We expect the recovery in 2011 to be sluggish, similar to last year. Domestic demand is unlikely to grow robustly, while export boosting gains on the back of increased price competitiveness have hardly been realised. As such, it is important that wage growth does not rise in line with inflation. Though this is bad for purchasing power and consumption, it is necessary for the rebalancing of the economy.