Courtesy of Mish.
The implosion in Spain continues, with the budget deficit heading in reverse, now revised up to 9.4% of GDP.
Spain’s original deficit target for 2012 was 4.4%, then revised to 5% then 5.3%. Yet another revision brought the target all the way up to 6.3%. So how is Spain doing? A few flashbacks will explain.
On April 10 I optimistically wrote Inconsistencies in Spain’s Budget Suggest Deficit will be 7% not 5.3%
“I have been saying for what seems like forever that Spain would not makes its budget. It won’t, and we have a starting point for how bad it might get.“
Indeed “starting point” was the operative phrase as 7% was reached by June.
On June 26, I wrote Spain Has Budget Deficit of 3.41% of GDP Through May (Not Counting Regional Governments); Target for Entire Year was 3.5%
That brief moment of 7% did not last long.
On September 21 I wrote Spain’s Fiscal Deficit 8.56% of GDP in First Half; Impossible Second Half Targets.
That did not last long either.
Brussels Revises Spain’s Deficit Upward to 9.4% of GDP
Today we learned from El Pais English edition that Brussels Revises Spain’s Deficit Upward to 9.4% of GDP
The European Union’s statistics office, Eurostat, on Monday said it had revised Spain’s public deficit for last year upward from 8.5 percent of GDP to 9.4 percent to reflect state injections of capital into nationalized banks.
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