World Economy

Spain Q2 Economy Grows by 3.1%

Spain Q2 Economy Grows by 3.1%Spain Q2 Economy Grows by 3.1%

The Spanish economy has now enjoyed almost four straight years of growth following a 0.9% increase in GDP in the second quarter and 3.1% in the last 12 months, according to the National Accounting figures published by the National Statistics Institute.

This means the rate of growth has increased by one-tenth in both the annual and the quarterly rate, thus maintaining a favorable growth differential for Spain with the eurozone average, eurasiareview reported.

According to the Spanish government, growth is thus balanced, with an improvement in the contribution of domestic demand, while the foreign trade sector maintains a positive contribution for the fifth straight quarter. Employment is growing at an annual rate of 2.8%, three-tenths higher than in the first quarter, with the creation of 480,000 full-time equivalent jobs in the last year.

Following these results, the Spanish economy has recovered the level of income prior to the crisis; in other words, since the maximum figure posted in the second quarter of 2008. GDP is 1% higher than at the end of 2007, although it must still recover between 15 and 20% more, from when it stopped growing during the five years of recession suffered by the Spanish economy.

The rate of 3.1% in the second quarter means this process has been speeded up and means that the forecast of 3% as an annual average will easily be achieved. Furthermore, Spain’s positive differential with the European Union and eurozone averages is maintained, having posted growth of 2.3% and 2.2% respectively in the second quarter.


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