BBVA Research has lowered its predictions for the labour situation in Spain, estimating that unemployment will reach 24.6% this year, and will climb as high as 24.8% in 2013, according to its latest report in 'Situación España' magazine.
These predictions are lower than earlier ones (24.4% and 24.6%) the government included in its macroeconomic budget plan for this year, which predicts 24.3% unemployment in 2012 and 24.2% in 2013.
The government has already admitted that the jobless figures could rise from 4.7 to 5.6 million, but the BBVA figures suggest that this figure could actually be closer to 6 million.
Spain currently has its highest unemployment figures ever recorded. It is also the the European country with the highest unemployment rate (number of jobless in relation to total population). Both the government predictions and those made by the BBVA suggest that Spain will continue to be the worst-performing country on the continent in relation to employment, for at least the next two years.
The government has now admitted that it is not going to be able to create employment in the short or medium term. BBVA Research agrees that the labour reforms brought in by the government would go some way to slowing down the increase in unemployment, and that they would have an "especially positive" impact, creating 10% more jobs in the long term, that would have been achieved without them.
BBVA Research has maintained its predictions with regard to this year's and next year's GDP (at -1.3% and +0.6%) and the deficit reduction at 5.3% this year and 3% in 2013, in line with the government's own predictions.
In fact, the bank said the measures adopted increased credibility about the possibility of reaching fiscal objectives and mentioned, in particular, the plan to pay suppliers, which could make a seven point difference in the GDP in 2012.
TWO of Spain's largest high-street banks are reported to be in merger talks, potentially resulting in the joint entity being the second-biggest in the country in terms of share capital.
THE average Spanish resident will spend between €500 and €1,500 on their holidays this year, with three in 10 set to increase their budget from last year and 16% reducing it.
SPAIN'S State post office has launched a new solution for passing travellers who do not want to lug their suitcases around: Lockers for bags are now provided, with prices depending upon weight.
