Spanish economy to end the year strongly, says minister

The third and fourth quarters are set to replicate the growth already experienced in Spain so far this year.

From sick bed to poster child – Spain’s recovering economy is set to grow by a further one per cent in the third quarter of the year, ensuring a strong end to 2015 following a similarly strong beginning.

A busy summer tourism season and increased domestic consumer spending has helped spur the economy over the past couple of months, and the pace of growth is expected to continue through to December, confirmed Spain’s economy minister Luis de Guindos…

Growth has been around one per cent per quarter in 2015, making it increasingly likely that Spain will finish the year with a four per cent GDP increase – putting the country at the forefront of Europe’s economic recovery.

The minister also said that Spain’s tax take will grow substantially this year too, which will further aid the turnaround and enable the government to reinvest this money into employment schemes and infrastructural upgrades. The 21 per cent VAT rate for cultural goods and services – denounced as too high by economists – will, however, remain at that rate for the time being.

For most people living in Spain, news of economic recovery needs to be translated into jobs if they are to really feel the benefits. But on this front – where the unemployment rate has proved stubbornly high over the past few years – things are beginning to improve.

In Andalucía, one of Spain’s most badly affected regions for unemployment, things have begun to look up in 2015. Recent data from Fuengirola’s council has revealed that more than 500 new businesses have opened in the region between January and July, including travel agencies, fashion shops, hair salons and even property agencies.