Spain: consumption drop four times as much as in ‘93

| 20 August 2009 11:20

According to the results of a study by the Spanish savings bank Caixa Catalunya, consumption will fall 4.1% this year, making the reaction to this downturn four times as severe as during the last big downturn in 1993.  Back then consumption only fell 0.9%.

The results are not only an indication of the deteriorated employment outlook in Spain but also of pressures due to the collapse in housing and shares as well as a loss of confidence by consumers.

The greatest falls are expected in the Canary Islands (-6%), Cantabria (-5.1%), Extremedura (-5%) and Navarra (-5%).

More here in Spanish from Finanzas.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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