MADRID, July 1 (Xinhua) — Spain’s Minister of Economy and Competitiveness Luis de Guindos said on Sunday that he expected the recession to continue in Spain throughout the second half of 2012.
De Guindos was speaking at a summer school organized by the right-wing FAES Foundation, which is presided over by former Spanish prime minister Jose Maria Aznar.
De Guindos added that this “negative growth” would be “slightly higher” than the 0.3 percent reduction in Spain’s GDP in the first quarter this year.
However, his remark appeared to be more optimistic than the official statement, which forecasted that the economy will shrink by 1.7 percent during 2012.
He was “convinced” that Spain could “take an important step forward in terms of growth and prosperity,” provided that the banking system was reformed, the debts cleared and the government’s economic reforms implemented.
De Guindos also welcomed the decision taken by EU leaders in Brussels to grant the bailout to recapitalize Spain’s banks and to direct 120 billion euros to help promote growth.
“It is a project that is not just economic, but also political,” he said.
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Editor:Wang Chuhan |Source: Xinhua