More Symptoms of Economic Recovery in Spain

La Caixa believes that the recession is beginning to abate in Spain after the sharp drop in the fourth quarter of 2012.

Madrid, Spain, April 01, 2013 – La Caixa believes that the recession is beginning to abate in Spain after the sharp drop in the fourth quarter of 2012.

The information provided by the Catalan bank La Caixa is derived from studies carried out by the bank, which believes that, although the light at the end of the tunnel can be seen, -we will have to wait until 2014 to create jobs-, as it will be at this time when the internal demand starts to gain a dynamic. Althoughthe drop in economic activities has slowed and the expectations are that the economic deterioration will be reduced in 2013, there are still no signs of an improvement in the labour market.

The battery of measures of support for entrepreneurs and towards the creation of jobs for young people passed by the government -should contribute to the improvement of the labour market situation, which continues to show no signs of change at present.-

The experts at La Caixa – who consider that -the intensity of the recession reached its peak in the fourth quarter of 2012- – also mention those banks that, it states, will no longer have losses which affect public debt, due to the -advanced restructuring process of the financial sector-. La Caixa believes that 2013 will be a year in which the bank focuses on recovering the system’s profitability, and understands that -the process of adjustment in terms of capacity and costs in the sector should help to regain profit margin-.

The financial institution’s report emphasized that the largest fall has been in the construction sector, with an accumulated drop of 37% from the first quarter 2008. This means that the accumulated drop of the GDP since 2008 through the third quarter of 2012 was 1.6% (5.7% including construction). For this reason La Caixa is pressing for the stability of this sector in order to slow down the fall of GDP in the next few months.

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