Future for Spanish Economy looks happier

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Flickr by La Moncloa Gobierno de España

THE Spanish economy appears to be recovering at long last. It grew at its fastest rate since 2007 in the second quarter of this year and there are signs that this growth (even if not at the same level) is sustainable.
Since mid-2013 the economy has been stronger thanks to a rise in consumer spending, competitive prices, and a huge increase in tourist visitors thanks in part to the weak euro and an ongoing drop in the very high unemployment rate.
“We’re starting to see the light at the end of the tunnel,” Economy Minister Luis de Guindos told Onda Cero radio after the release of recent data showing a quarterly growth rate of one per cent. “We are now able to return to pre-crisis income levels.”
The government is obviously hopeful that this recovery will continue as it would help its chances of winning in the elections due by the end of the year. But it does face a major task to persuade voters that the turnaround is reaching everyone.
Although low inflation has helped to put more money into some people´s pockets, Spain still has over 20% unemployment, second only to Greece within the euro zone.
Whilst the International Monetary Fund expects Spain’s economy to grow by around three per cent percent this year, high levels of government and company debt tend to inhibit an investment revival that could herald a more balanced recovery. Despite this, 2015 could see Spain having the fastest growth rate in the euro zone.
Many large Spanish companies have taken the opportunity during the years of recession to expand their business internationally and this foresight could well help to buoy up their businesses as a weak home market could be offset by strong overseas markets.
A little known British politician announced to hoots of laughter that she had seen the first shoots of growth in the UK economy some years ago, but perhaps it is safer to forecast the same now in Spain.

1 COMMENT

  1. I really don’t see anything to celebrate here, the PP need to try and make people think things are getting better as an election is coming up soon. Low fuel costs and a high sterling exchange rate are helping things a little in various ways but that is nothing to jump around about.

    If the government want to see Spains economy grow and want to see a recovery worth a dam then they need to change the employment system and regulations, Spain will not go forward until that happens and happens in a major way and I am sure Rayoy is not the man to take Spain anywhere except backwards from what I can see as the man appears has a mindset from the 30’s with very little political or diplomatic style. I am not sure if they know this but don’t want to or just can’t see it but I honestly feel this is the root of Spain being held back from coming out of the economic state that it is in, Oh yes, corruption is a big part of things also but if the people of the country are not working and the ‘educated’ youth of the country that can work has left to work in other countries then the country will never recover! If anyone who is self employed or has a business has tried to employ someone or does employ people they will know how bureaucratic it can be when it doesn’t need to be! The labour system here puts people/companies off from employing people, extra monthly payments (XMas, summer), 14 paid bank holidays, 22/33 days a year pay off for every year worked then as I mentioned before… bureaucracy, forces people to have to pay a gestor a monthly fee on top of everything else to get the paperwork done… wakey, wakey Spanish politicians!

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