After the financial crisis and the
deficit tussle, Spain's economy has been left in tatters. Spain's
exchange traded fund (
) has been hit hard and it may stay that way for awhile as Spain's
economy stagnates as high unemployment reins and more people depart
the country in search of better opportunities elsewhere.
Spanish Economy Minister Elan Salgado stated that infrastructure
spending will only be reduced by 500 million euros for 2011 as
compared to the previous estimates of 6.4 billion euros in spending
reports Martin Roberts for Reuters
. The government is committed to bringing down the deficit to 6% of
The Bank of Spain
reported that GDP growth increased by 0.2% in the second quarter
from the first quarter,
according to BusinessWeek
. Still, the overall economy remains 0.2% smaller year-over-year.
Growth in Spain is the slowest among the
Unemployment is hovering at 20%, the highest in Western Europe,
as stated by Barcelona Reporter
. Exacerbating the situation, Spain's workers are migrating to
other countries as they fear the country's job instability. Experts
describe the situation as a short-term occurrence.
For more information on Spain, visit our
iShares MSCI Spain (NYSEArca: EWP)
is down 11% in last two weeks
Max Chen contributed to this article.