Spain faces another tough year as it grapples with recession, a deep financial crisis and 25 percent unemployment, its prime minister said Friday.
In his end-of-year assessment, Mariano Rajoy said the country’s crisis had been worse than anticipated.
“We are facing a very tough year, especially in its first half,” he said. “Spain’s economy will remain in recession for some time, but we expect it will improve in the second half of 2013.”
While Rajoy was speaking, investor concerns over government attempts to shore up the main cause of Spain’s problems – its shaky bank system – sent shares in lender Bankia falling nearly 27 percent.