Monday, January 2, 2012

Spain Revises Deficit to 8%, Further Revisions Likely

Remember back in 2010 when the market was just discovering Greece as insolvent, when the country revised its deficit almost daily until the truth came out that the actual deficit was over 14%?
Spain is now playing the same game.  Reuters reports this morning that Spain's public deficit reported Friday as 8 percent of GDP is likely to actually have exceeded 8%. 
Maybe we should have an SD contest for Spain's actual public deficit. 
The Doc's gonna go with 19%.
Spain's public deficit could have exceeeded the 8 percent of gross domestic product forecast by the new centre-right government on Friday, the Economy Minister Luis de Guindos said on Monday.

The original deficit target for last year was 6 percent of GDP, but the conservatives said last week that the target had been missed due to higher-than-expected shortfalls by the regions, the central government and the social security system.

The new government had a very aggressive reform agenda planned for the next few weeks and months, Guindos added during a radio interview.

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