Spain’s Unemployment Rate to Hit 23% in 2012

With it economy wracked by the European financial crisis, Spain’s unemployment rate will continue to rise in 2012 reaching 23%, the Organisation for Economic Co-operation and Development forecasts.

The economy in Spain is predicted to contract again in the fourth trimester of 2011 and within a year will grow by 0.7% with growth predictions for 2012 revised downwards from 1.6% to 0.3%. In 2013, predictions are that Spain will see a growth of 1.3%.

Unemployment predictions see Spain’s unemployment rate at 21.5% at end of 2011, and 22.9% in 2012 with a slight decrease in 2013 to 22.7%.

Spain’s public deficit is expected to be reduced to 6.2% of GDP in 2011, 4.4% in 2012 and by 2013 down to 3%.