EU predicts slow recovery for Spanish economy

MADRID, Sept. 14 (Xinhua) -- Spain would remain in recession until the end of 2009, European Commissioner for Economic and Monetary Affairs Joaquin Almunia predicted on Monday.

He warned that the Spanish economy could shrink by 3.7 percent in the current year, about half a percentage point worse than previous expectations.

"The recession is less deep than the European average, but it is going to last longer. The reason for that is the adjustment from the disequilibriums which have accumulated over the last 10 years," said Almunia, in reference to the Spainish construction boom, the deficit and a possible reliance on external finance.

Spain had the second highest increase in employment in the euro zone during the second quarter of 2009. The country saw a 1.3 percent rise in the number of people out of work, following only Slovenia whose unemployment rate climbed by 1.4 percent.

The EU also predicted that Spain's inflation will move into positive numbers during the last several months this year, reaching a level of between 0-0.4 percent.