ECB says economy in Spain is moving in right direction

THE latest news on Spain’s economy comes from the European Central Bank and the European Commission on Monday, October 12 whose fourth review of Spain since its bailout is relatively positive.

The Commission said: 

“Overall, past structural reforms, bank recapitalisation and supportive financial conditions are increasingly reflected in the stabilisation of the financial sector, a strong economic recovery and low sovereign risk premia.”

Despite high unemployment rates and financial imbalances that pre-date the financial crisis, Spain has seen some solid recovery in its economy and job creation.

Earlier in the month, the debt rating in Spain was upgraded by one notch by Standard and Poor’s (the rating agency). S & P also raised its Spanish sovereign credit rating from BBB to BBB+.

Monday’s statement from the ECB does caution, however, that “significant challenges remain,” adding that:

“Sound public finances and sustained reform efforts are paramount to sustain the recovery, further rebalance the economy and maintain low-risk premia going forward.”