Wednesday, 14 November 2007

Housing Slump, What Could Trigger It?...Spain

Spanish firms and households are some of the most indebted in Europe and economists have slashed 2008 growth outlooks on concerns the country is exposed to the global credit crunch.

Economists do not rule out a recession in Spain from 2009-2010 as one of Europe's most unproductive and inflexible economies struggles to shift away from a construction and consumer based model.

"We have a latent mortgage crisis in Spain owing to the enormous volume of loans handed out," said Manuel Pardos, chairman of Spanish banking and Insurance consumer rights


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