Are you paying attention? For many years Spain’s economy was in a slug. But, they are back! With figures well above EU average.
Spain’s growth forecasts for 2015 have been revised upwards by most analysts. Gross Domestic Product will grow above 3% over 2015. This is well above EU average. And, coming years this growth will continue to be above average with forecasts of 2016: +3,0%, 2017: +2,9% and 2018: 2,9%. Since 2014 Spain is back on a path of growth.
Although the unemployment is still high, the country has generated 42,3% of all the employment created in the Euro Area since 2014. Structural unemployment is falling since then. And, it is generated across a broad array of sectors.
This growth is driven primarily by investment, followed by consumption. Consumer confidence is above 2007 levels. Retail sales are accelerating despite low inflation. Retail is spurred by employment creation.
And, as the Spanish economy is growing consistently it does so in a balanced way: unemployment is decreasing, foreign investment is increasing, exports are rising and finances for both corporates and private persons have been growing since early 2014 as well and are becoming more available. Growth is carried across many sectors.
One of the driving forces is exports with its weight in GDP has increased from 21,1% in 2009Q1 to 32,9% by 2015Q2. For a third consecutive year there is a Current Account Surplus, supported by falling oil prices and accelerating goods exports (+5,7% YoY in 2015Q2 vs a global decline of -0,3% YoY.
Source: The Kingdom of Spain: Economic Policy & Funding, November 2015.
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