Spain’s economic recovery accelerates towards year end

The General Election on December 20 will go some way to determining Spain’s economic performance in 2016.

Comments from the Spanish Economy Minister Luis de Guindos suggest that Spain’s economy has strengthened further towards the tail-end of the year following a solid third quarter that represented the fastest growth across the entire eurozone…

In an interview sure to warm the heart of current Prime Minister Mariano Rajoy ahead of next month’s general election, de Guindos told Spanish newspaper ABC that the early indications point to October’s economic growth improving further on the third quarter, rising 0.8%, which, while a slowdown on the change between the second and third quarter, was still the most buoyant growth across the eurozone.

De Guindos also said that this pace of recovery will increase into 2016 should current policies be maintained, rising to more than 3% across 2016. These comments were no doubt intended to remind voters that, despite recent hardships, the ruling People’s Party’s (PP) labour reforms and economic strategies have been pivotal in steering Spain out of recession.

If this growth margin is maintained, the minister added, then the government could even begin implementing tax cuts next year. He did stress, however, that the next government must continue with sales of packets of shares in Bankia.

The bailed-out lender is now owned mostly by the state, but this situation cannot continue if the government is to remain strong and Bankia is to regain its position as a leading lender for business and mortgages.

“The privatisation process must continue, it is part of the agreement with the European Commission,” de Guindos said. “And the next government must go ahead with that.”