Spanish Economy Grows By Fastest Rate In Six Years

The Spanish economy grew by 0.4 percent in the first quarter of 2014, according to the central bank on Thursday, the fastest growth since 2008 and double the rate of increase recorded in the last quarter.

“In the first quarter of 2014, the Spanish economy continued on a path of gradual recovery in the context of increasing normalisation on the financial markets and a gradual consolidation of the labour market,” the central bank said, as cited by the International Business Times.

The Spanish economy grew by 0.4 percent in the first quarter of 2014, according to the central bank on Thursday, the fastest growth since 2008 and double the rate of increase recorded in the last quarter.

“In the first quarter of 2014, the Spanish economy continued on a path of gradual recovery in the context of increasing normalisation on the financial markets and a gradual consolidation of the labour market,” the central bank said, as cited by the International Business Times.

[quote]”We have rebuilt our economy in record time, we have better foundations and the wind is blowing in our favour,” added Spanish Prime Minister Mariano Rajoy.[/quote]

Prime Minister Rajoy tipped the economy to exceed the government’s official forecasts for growth of 1.0 percent in 2014 and 1.5 percent in 2015. He further boasted of the government’s austerity measures and labour market reforms that helped to consolidate financial market support further.

Spain’s Economy Minister Luis de Guindos said he expected GDP to grow by an average of 1.5 percent in 2014 and 2015. “The goal is to achieve two years in a row of growth, with net job creation, and that will be the exit door from the Spanish crisis,” De Guindos said.

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Unemployment however remains a problem. It was 25.7 percent in the final quarter of 2013, the National Statistics Institute said Thursday. While that was down from a 26 percent rate previously reported, it remains near record highs.

De Guindos admitted that jobs growth had been “clearly insufficient.”

[quote]”A country with an unemployment rate of 26 percent is starting at a terrifying level,” de Guindos said.[/quote]