This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2015/jul/30/spanish-economy-back-to-pre-crisis-growth-levels
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Spanish economy back to pre-crisis growth levels | Spanish economy back to pre-crisis growth levels |
| (34 minutes later) | |
| Spain’s economy has recorded the strongest growth since 2007, before the global financial crisis plunged the country into recession. | 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. | 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. | 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.” | 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. | 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. |
| “We draw encouragement from the acceleration in the pace of recovery,” said Timo del Carpio, of RBC Capital Markets. “Today’s outturn should cement Spain’s position ahead of many of its peers, and we forecast 3.1% growth this year and 2.7% in 2016. | “We draw encouragement from the acceleration in the pace of recovery,” said Timo del Carpio, of RBC Capital Markets. “Today’s outturn should cement Spain’s position ahead of many of its peers, and we forecast 3.1% growth this year and 2.7% in 2016. |
| Related: As Greece stares into the abyss, has Spain escaped from crisis? | |
| Analysts said weak inflation had boosted the buying power of Spanish consumers. “Low inflation, accommodative financial conditions and, more importantly, improving labour market conditions are likely to have boosted private consumption,” said Antonio Garcia Pascual, European economist at Barclays. | |
| The strong economic performance may help to underpin support for Spain’s prime minister Mariano Rajoy, who faces a tough re-election battle in the autumn. | The strong economic performance may help to underpin support for Spain’s prime minister Mariano Rajoy, who faces a tough re-election battle in the autumn. |
| Despite Spain’s economic recovery, voters punished Rajoy for a series of corruption scandals in local elections in May, with both the anti-austerity Podemos (“We Can”) party, and pro-market Ciudadanos (“Citizens”) polling well. | Despite Spain’s economic recovery, voters punished Rajoy for a series of corruption scandals in local elections in May, with both the anti-austerity Podemos (“We Can”) party, and pro-market Ciudadanos (“Citizens”) polling well. |
| Madrid was forced to ask its eurozone partners for financial support to rescue its troubled banking sector in 2012; but it “exited” the bailout in January 2014. Spain’s banks were hit hard by the property crash that followed the global financial crisis, after a frenzy of speculative lending in the boom years that followed Spanish euro-entry. | Madrid was forced to ask its eurozone partners for financial support to rescue its troubled banking sector in 2012; but it “exited” the bailout in January 2014. Spain’s banks were hit hard by the property crash that followed the global financial crisis, after a frenzy of speculative lending in the boom years that followed Spanish euro-entry. |
| A separate survey published by the European commission showed that consumer confidence across the eurozone slipped slightly in July, “due to consumers’ growing pessimism about the future general economic situation and future unemployment”. | |
| Perhaps not surprisingly, Greek confidence plunged, as consumers struggled to cope with the chaos of shuttered banks and the threat of ejection from the single currency. | Perhaps not surprisingly, Greek confidence plunged, as consumers struggled to cope with the chaos of shuttered banks and the threat of ejection from the single currency. |