Topic: Global financial crisis
MADRID, October 10 (RIA Novosti)
- Spain’s 2013 Budget to Save $51 Bln
- Europe Markets Choke as Greece and Spain Flounder
- Spain’s Opposition Slams 65 Bln Euro Budget Cut
- Spain Seeks Finance Union as Bond Yields Hit 15 Year High
Capital flight from Spain reached a whopping 296 billion euros or 27 percent of the country’s GDP from June 2011 to June 2012, the IMF said on Wednesday.
Investors fear the eurozone sovereign debt crisis may escalate and are withdrawing funds from recession-hit peripheral countries, despite the Spanish government’s efforts to cut the budget deficit and carry out structural reforms.
The IMF predicts Spain’s budget deficit will reach 5.7 percent of the country’s GDP next year, above the planned level of 4.5 percent.
The IMF also estimates Spanish GDP will fall by 1.3 percent next year. Spanish economists are more pessimistic and think GDP could plunge 3.2 percent in 2013.
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One of the main achievements of the 6th BRICS Summit was the signing of an official document on establishing a New Development Bank with a declared capital of $100 billion. The creation of the bank is an important step towards institutionalizing BRICS and strengthening its positions in the world in the long run.