Spainsh GDP estimates for the first quarter show that GDP has contracted 0.5 per cent from the previous quarter, and two per cent from the year earlier. This two per cent crunch follows a fall in GDP of 1.8 per cent in the previous year.
Following the news, finance minister Luis de Guindos has said that the Spanish government is committed to tax cuts whenever possible. Last week he stated that there will be no recovery until 2014.
Last week unemployment hit a record high of 27.16 per cent, reminding us that for Spain (and many other countries like it), the crisis is far from over.