Spain’s Growth in Q4 of 2013 Shows Recovery

February 27, 2014 Share Print 0

Spain’s economy grew between October and December as domestic demand and investments improved, data showed, adding to signs that its recovery from recession is slowly gaining traction.

Gross domestic product expanded by 0.2 percent in the fourth quarter from the third, its second quarterly expansion in a row, Thursday’s final National Statistics Institute (INE) data showed. The economy contracted 0.2 percent year-on-year.

Both figures were below INE estimates given earlier this year of a 0.3 percent quarterly expansion and a 0.1 percent annual drop, though analysts played down the growth gap.

“There’s been a small downward revision, but it doesn’t change the overall picture dramatically,” said Silvio Peruzzo, economist at Nomura.

“The recovery is clearly on track and accelerating, with investment and consumer demand improving.”

In Spain, domestic demand is worth around two thirds of output and, after a burst property bubble in 2008 left millions out of work, has been a heavy drag on the economy as both consumers and businesses reined in spending.

via Reuters

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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.