Spain to withdraw stimulus gradually

04 Sep, 2009

Spain will withdraw its anti-crisis spending gradually in order to avoid a double-dip recession, Economy Minister Elena Salgado said on Thursday. "We will take it away gradually, and we still don't have a timetable. What we want to avoid is taking away the stimulus too suddenly, which could cause a "W"-shaped recovery," she told a news conference.
Spain's public accounts have gone from a surplus of 2.2 percent of gross domestic product in 2007 to an expected deficit of over 10 percent in 2009 due to a massive economic stimulus package and sliding tax revenue.

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