VOICED: Espana vuelve a la recesion

Spain has officially re-entered a recession, as announced on Monday. Since the 2008 housing bubble burst, Spain has fluctuated between weak growth and recession. The GDP fell by 0.3% in the first quarter, mirroring the last quarter of 2011. This recession is due to significant public account adjustments and intensified economic restructuring. Standard & Poor's downgraded nine Spanish banks and the sovereign rating of Spain. The government predicts a 0.2% GDP growth in 2013 after a 1.7% decline this year. The recession's duration depends on internal adjustments and external conditions, especially within the EU. Construction is stagnant due to austerity measures by Mariano Rajoy's government, aiming to reduce the deficit. Unemployment has hit a record 24.44%, increasing social unrest.

What new insight or understanding did you gain from this video?