Spain Emerging from Recession, says Central Bank
Spain is emerging from a two-year recession, its second since the 2008 global financial crisis, according to the Bank of Spain.
The bank estimates that gross domestic product (GDP) edged 0.1% higher in the third quarter of 2013 after a -0.1% contraction in Q2, although the year-on-year figure is still -1.2% down. The estimate comes before Spain’s national statistics agency, Instituto Nacional de Estadistica (INE) is due to releases preliminary Q3 GDP data on 31 October.
The Bank of Spain said the country’s economy was helped by stronger exports in the July to September period. “The slight recovery in activity in the third quarter after the fall a quarter earlier is due to… a more favourable contribution from the external sector,” its monthly bulletin reported.
Spain’s unemployment rate, which has risen above 26% is among the highest in Europe and government austerity measures aimed at reducing the country’s large deficit triggered widespread protests and demonstrations in 2012.
However, the government of prime minister Mariano Rajoy has recently claimed that the end of the recession is close as financial reforms and austerity measures start to produce results
Ignacio del Torre, economist at financial advisory firm Arcano, said: “After recently implemented reforms, Spain has become an export powerhouse. It will fully leave the recession behind in 2014 with private investment and consumption growth turning positive after three years of decline and credit levels stabilising.”