IBEX slumps on dire Spanish data

(Source: Yahoo! Finance)

The Spanish stock index, the IBEX, has slipped on alarming Spanish GDP figures released earlier this morning. GDP figures for 2012 has now been revised down to -1.9 per cent as fourth quarter figures for 2012 come in revised down to -0.8 per cent. This follows Prime Minister Mariano Rajoy yesterday attempting to reassure the country that Spain was on the right track and would stick to its economic plan.

At the same time inflation (measured by the Consumer Price Index) sees a rise to 2.8 per cent. Price stability is threatened while Spain simultaneously wrestles with a huge unemployment problem. Youth unemployment is so high as to threaten Spain with a lost generation.