Spain's economy experiencing 'adjustment' not 'crisis': Solbes

0 Comments | AFP, June, 2008

MADRID (AFP) — Spain's Economy Minister Pedro Solbes said Friday the country's once-buoyant economy was experiencing an "abrupt adjustment" but denied it was in "crisis."

The minister noted the "huge impact" of the slowdown, evidenced by a drop in economic growth to 0.3 percent in the first quarter from 0.8 percent in the same period last year.

But the word "crisis" is generally associated with a recession, the former EU economic commissioner told a news conference, preferring the terms "strong slowdown" or "intense and abrupt adjustment."

He reaffirmed his prediction that gross domestic product would be around 2.0 percent in 2008.

Spain's economy expanded by 3.8 percent in 2007, above the eurozone average of 2.6 percent, but the country's...