BBVA - Press Room

BBVA Research Department said in the "Spain Watch" report that the unprecedented recession in the global economy has caused a more severe downturn in the Spanish economy than what was forecast four months ago. Widespread uncertainty explains the increase in precautionary savings as well as the fall in investment in capital goods and housing. All of this will have a negative bearing on the Spanish economy and cause it to shrink by 2.8% in 2009.