Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Spain and UK seem to be competing for biggest fall in ’09 › Reply To: Spain and UK seem to be competing for biggest fall in ’09
The European Commission sees the unemployment rate continuing to rise in Spain to 16.1 percent in 2010 and 18.7 percent the following year. This contrasts with the Spanish Government’s forecast that it will rise to 15.9 percent this year before gradually starting to fall.
Standard & Poor, who recently lowered its rating on debt issued by Spain by one notch, said euro membership had become part of the problem since it prevented the country resorting to aggressive monetary stimulus to counter the housing crash, or from devaluing to restore competitiveness.
Looks like Spain is in very deep trouble. If the Euro doesn’t weaken in the next few months I can well see a major downturn in tourism from the UK