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Unemployment in Spain, which is the highest in Europe, also reported increases. Official figures from Madrid show that during the first three months of the year the army of unemployed increased by 365,900 people, which the unemployment rate reached 24.4 percent. This means that one in four people are unemployed. Unemployment among the young bear was 49.6%.
Economists have long warned that if the rate at which rising unemployment has accelerated, it would undermine confidence in the government’s ability to cope with the situation. Currently, state officials are trying to contain the budget deficit is currently 8.5% of GDP and to reduce to 5.3% at the end of the year as Europe calls for it.
Stunning news about unemployment came a day after the agency Standard & Poor’s lowered by as much as two orders of magnitude rating of Spain. This is immediately reflected in the markets where yields that investors want a 10-year government of Spain jumped back above 6%.
Markets will await more data from Madrid on Monday, will be published when data on gross domestic product. According to preliminary data from the Bank of Spain, the country will consider the economy shrinking by 0.4% in the first quarter, which will mean that Spain back into recession.