Spanish economy enters a phase of stagnation

Spanish central bank confirmed on Wednesday that the country's economy has entered a phase of stagnation, starting from the fourth quarter of last year after registering a decline during the two consecutive quarters. The Spanish economy during the last year the total growth rate by 1 .1 per cent, or b «low» »compared with 7 per .3 per cent, which was recorded during the year 2007. The Spanish bank attributed this decline to a decrease in the volume of demand on the domestic consumption and investment, which was aggravated during the fourth quarter of last year in spite of the positive rate of 7 .1 per cent in terms of foreign trade. Foundation seeks to enable the release of lower interest rates and inflation as well as actions taken by the Government to control the financial crisis «mitigation» the back of this, stressing that the recovery of domestic demand will be difficult in light of «climate of shrinking» in the world economy. It should be noted that the Spanish economy during the last year known as «sharp fluctuations» with the collapse of the real estate market, followed by the instability of global capital market boom, which led to the weakening economy and the establishment of a lack of confidence between the financial bodies.