The Spanish economy expanded 0.8 percent due to such factors as increased demand and lower oil prices, notes Bloomberg Business. However, take the latest data with a grain of salt as momentum continues to slow compared to the previous quarter. A slowdown in the Chinese economy, a big factor, and overall volatility within the world economy will prevent substantial growth in the near term.
Catalonia goes to the polls on September 27. Although Madrid stymied efforts to hold a referendum on independence, many partisans are claiming the weekend election is precisely such a referendum. Even if this is not legally true, a victory by a coalition of those seeking independence would intensify the confrontation with the federal government, ahead of the national elections that will be held later this year.
Spain’s economic recovery started in 2013, after five years of economic stagnation, but analysts say that approximately 1.7 million people earn a living through jobs not taxed by the government. Even though Spain is in the midst of a recovery, the country still has the second highest unemployment rate in the European Union, with Greece coming in first. The unemployment rate went from 23.8 percent in the first quarter to 22.4 percent in the second quarter, according to The Economic Times.
Spain has the fifth largest economy in the European Union, but it may soon be climbing the ranks. According to a recent report by the Associated Press (via ABC News), the Spanish Economy Minister, Luis de Guindos, believes the Spanish economy is growing at the strongest rate since the nation slumped — along with the rest of the world — during the economic crisis and global recession that began in 2008.
Despite public frustration, Prime Minister Mariano Rajoy projects 2.9 percent growth in 2015 and 2016, while creating around 500,000 jobs. Rajoy is relying on economic progress to win a second term in office.
It was once fashionable for European officials to offer geography lessons to investors. Ireland is not Greece. Portugal is not Spain. Italy is not Greece. France is not Italy.
Spain’s unemployment level just experienced its sharpest, most impressive drop since the country began using the euro. Experts suggest that the drop is further evidence that the country is finally beginning to turn around. That is, unless they are not counting those who have just given up looking for work like U.S. data does to underestimate reality.
Recently, Spain has surprised many economists by raising its forecast towards a more positive economic growth for this year and the following year. This provides a sharp contrast to other countries in the eurozone that are currently struggling quite significantly. For example, France and Italy have lowered their economic outlook for the coming year and Spain was supposedly just as socialist and backwards.
Just because you are doing better than France and Italy does not mean there is nothing to cheer about.
Spain is a member of the European Union (EU), the Organization for Economic Cooperation and Development (OECD), and the World Trade Organization (WTO). It has a mixed capitalist economy and is the 14th largest economy in the world. The currency of Spain is the euro. The economy is dependent on tourism, the export of semi manufactured goods, automobiles, fruits, renewable energy, and manufacturing.
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.
