Budget Deficit in Spain Drops by 48%
August 31st, 2010
Spain’s budget deficit narrowed 48% year-on-year in the first seven months of the year after the government’s austerity measures started working.
According to a statement released by the Economy Ministry, the deficit totaled € 25.77 billion, or 2.44% of the country’s gross domestic product. A year ago, the deficit was € 49.8 billion or 4.73% of GDP in the same period.
The Spanish economy maintained a recovery in the second quarter by growing 0.2% following a 0.1% rise in the March quarter, exiting recession.
The country’s Prime Minister Jose Luis Rodriguez Zapatero announced steep budget cuts aimed at bringing down the country’s large budget deficit, after pressure from the European Union. Measures include public sector wage cuts, reductions in subsidies for property in Spain, and smaller budget allocations for regional governments. Spain has pledged to bring the shortfall under 3% by 2013. RTT
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