Spain's once buoyant economy will shrink 3 percent this year, causing unemployment to soar to about 17 percent, the country's central bank predicted Friday, AP reported. The recession is also likely to continue for another year, with Spain's gross domestic product set to fall by 1 percent in 2010, the bank said. The country's jobless rate _ already Europe's highest at 15. 5 percent _ could reach 19.4 percent next year, the bank said. Economy Minister Pedro Solbes said the forecasts showed the recession was likely to get worse. Until recently, the Socialist government predicted GDP would decrease by 1.6 percent in 2009. Spain was one of Europe Union's most dynamic economies for more than a decade but is now among the nations hardest hit by the international financial crisis, mainly due to the near collapse of its key construction sector.
