As per reports, Spainsh economic system contracted a little more in 2009 than previously predicted, contracting by 3.7 percent.

According to the statement issued by the National Statistic Institute (NSI) in the month of February, the economy fell by 3.6 percent in the last year (2009), however, the recent calculation consisted of new facts and figures that were not available at that time.

In the meantime, INE also affirmed a growth of 4 percent in the year 2006, 3.6 percent in 2007 and 0.9 percent in 2008.

Agro-based food producer QL Resources Bhd has recently announced to invest around RM400 million in capital expenditure (capex) by 2012, largely to promote the subsisting plant and machinery as well as to develop new plants in Vietnam and Indonesia.

While talking to media, the managing director of the company, Chia Song Kun, said that the spending would be used to further increase its core business sections, namely integrated livestock farming, marine product manufacturing and palm oil activities.

RAM Ratings announced that Spain’s gross domestic product (GDP) is expected to increase by 7.4 percent for 2010 following the Government’s declaration that GDP increased by 8.95 percent in the second quarter of this year.

Moreover, the agency said in a report that the country’s GDP growth was likely to grow at a slower pace of 5.6 percent in the second half of the year, which was in proportion to potential output.

The Spanish parliament has decided that it has sanctioned a plan to cut public spending by 7.7 percent, which will form a key part of cruel budget plans for 2011 to be set out in September.

The plans will see public spending dropped down to 122 billion euros ($157.6 billion), excluding funds to Spain's autonomous regions, down from 132 billion euros in the existing year (2010).

The cut forms a vital part of the government's drive to cut its deficit to 6 percent by next year from 11.2 percent in 2009 and ease market worries that have dogged euro zone periphery countries this year.

According to some recent reports released by Spain’s ruling Socialist party, lawmakers in both chambers of Parliament have decided to reduce their salaries by 10 percent as a move to reduce the deflect.

While talking to media, the ruling party’s spokesperson in the lower chamber, Jose Antonio Alonso said that all parties in the chambers had decided to this at a meeting.

In the meantime, the parliament’s press office said that the deal in principle will be voted.

According to the data revealed by the Banks of Spain, their bad loans has been increased to almost 2 billion euros (US$ 2.80 billion) to a 14-years high in the month of February as economic crisis disturbed borrowers struggled to service debts.

Further, the Non-performing loans (NPL) increased to 5.3 percent of total non- credit card debt at Spains' banks and some of the financial institutions in the month of February this year, from 5.2 percent in January, whilst total lending has surged slightly to 1.76 trillion euros.

According to the data released, Spanish home sales increased in the month of February, but the country’s battered real estate market remained in the doldrums as property costs continued to decline.

Moreover, house sales increased by 18.7%, the National Statistics Institute announced that for the largest monthly growth since the index was created in 2007.

It was also second successive month of increases after an increase of 2.1% in the month of January.

According to the statement released by the governor of the Bank of Spain, the high jobless rate would remain as a important matter though Spain seems to be recovering from the economic crisis.

Moreover, the country has more than 4 million unemployed people, accounting for around 20% of the total personnel.

While talking to press media, Governor Miguel Angel Fernandez Ordonez said, “The high unemployment rate as the main risk that hangs over Spanish credit institutions.”

The National Statistics Institute has recently declared that Spain’s household savings rate increased by 24.7% of disposable income in the fourth quarter of last year, the biggest level after 2000.

Moreover, the disposable income of households stood at an approximated 192.7 billion euros ($259.71 billion) from the month of October to December 2009, an increase of almost 1.2% from the fourth quarter of 2008.

However, the consumer expenditure declined 0.40% in the same period of time, pushing savings up by 47.74 billion euros ($64.36 billion), and growth of 7.1%.

The Bank of Spain has revealed that the country’s Current Account Deficit (CAD) has increased to EUR 6.53 billion in the month of January as compared to EUR 6.16 million in the same period in last year.

Moreover, as per the statement released by the central bank, the trade balance has recorded a fall of around EUR 4.13 billion in the month of January this year, up from the EUR 4.08 billion deficit in the previous year.

Meanwhile, the services account has showed an increase of EUR 1.50 billion, with the surplus in the tourism account of the country standing at EUR 1.62 billion.