Spain may have already seen the worst part of the economic crisis within the borders of their country, giving more chance for investments and exchange traded funds (ETFs) to grow.If Spain’s economy minister if right, the country’s economy may be bottoming out. However, the employment situation will take longer to recover, possibly not hitting rock bottom until 2011, reports barcelonareporter.com. According to the Economic Ministry report, Spain’s central government budget deficit totaled $27.1 billion between January and May.
Manuel Maria Ruiz for Reuters reports that the budget deficit keeps growing, while the job market is still in shambles. The important part is that the country has an economic stimulus in place that should be just what the ailing banks need in order to recover. The total is $137.6 billion, which should be enough to keep the structure of the banking system strong, report Paul Day and Jesus Aguado for Reuters.
- iShares MSCI Spain Index (EWP): up 2.1% year-to-date; up 22.3% over three months
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.