Spanish Economic Growth Hits Pre Crisis Levels in Q2

Spain’s economy has recorded the strongest growth since 2007, before the global financial crisis plunged the country into recession.

Economic growth was 1% in the second quarter of the year, up from 0.9% in the first quarter, reaffirming the strength of Spain’s recovery, and underlining the divide with more troubled eurozone economies such as Greece.

Spain’s centre-right government expects the economy to grow by 3.3% this year, although unemployment remains a huge problem with more than 5 million people out of work, an unemployment rate of 22.4%.

While the the number of jobless is staring to fall, many jobs are temporary and badly paid. The government expects the unemployment rate to fall back below 10% within the next three years.

Economy minister Luis de Guindos said in a radio interview: “We’re starting to see the light at the end of the tunnel. We are now able to return to pre-crisis income levels.”

Spain expects a record tourist season this summer, which should help growth in coming months. Inflation is now non-existent, with the latest reading at zero this month, down from 0.1% in June.

via The Guardian

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza