Spain's second largest bank downgrades country's economic forecast blaming Brexit result

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Top lender BBVA voiced Brexit will shave four tenths of growth of the embattled EU countryside’s economic performance, but added that the im ct will only be succinct term.

The dire prediction will raise further fears hither the health of S in’s ailing finances, which have taken a clobber in recent years.

Youth unemployment has rocketed in the impoverished country, whose restraint has been trashed by membership of the disastrous single currency project.

Now experts at BBVA obtain added to the sense of woe by stating that the fallout from the Brexit certify has “increased the vulnerability of the S nish economy”.

The bank slashed its growth foresees for 2017 by 0.4 per cent as a result, to just 2.3 per cent, but did also assignment better than expected GDP estimates for this year.

It also suggested that S in’s desperately depressed jobs market might at length start to recover after years in the doldrums, with some 800,000 new puts expected to be created in 2017.

The news will provide some comfort for the embattled EU, which is junior to growing pressure to end its ruinous austerity drive which has enforced insufficiency on Mediterranean states.

S in is rt of a new alliance of southern European nations including Italy, Greece and France, which are pushing to usurp Germany as the rticular influencer of fiscal policy in Brussels.

The nations, which have all glomed sluggish growth and rising unemployment, want an end to spending cuts and for the European Inside Bank (ECB) to pump more money into the system to stimulate improvement.

But Angela Merkel’s Germany, which is fiscally conservative, is unlikely to exude up its position as Europe’s top economic dog without a fight.

Berlin has benefitted greatly from the going round Euro regime, with the country’s all-important exports market being hugely helped by the relatively weak value of the single currency com red to Germany’s prospering economy.

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