Spain’s GDP fell sharply in Q3

<p>Spain’s GDP has significantly dropped over the period between July and September.</p>

Spanish gross domestic product (GDP) continued on its downward trajectory in the third quarter (Q3) of this year.

According to the Bank of Spain, data for the July-September period indicates GDP continued to fall at a sharp rate in the context of high financial anxieties.

Economy minister Luis de Guindos said over the weekend that he expects the country's economy to contract by around 0.4 per cent in Q3.

This follows an evening of civil unrest in the Spanish capital last night (September 25th), when protestors formed human chains around the parliamentary buildings on the Neptune Plaza to demonstrate against planned austerity measures.

The cuts are necessary for the country to prove to international lenders it is in control of its financial situation, however the nation's borrowing costs are higher, with the yield on ten-year bonds climbing to 6.02 per cent from 5.67 per cent.

At 11:45 BST, all the European stock benchmarks were lower, with the Madrid Ibex sliding three per cent to 7926.20 points.

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