Forex »

Spain’s Third Quarter Reveals Further Growth

James Boston
Share on StockTwits
Published on
www.finances.com
Spain’s Third Quarter Reveals Further Growth

The official early estimates for third quarter GDP growth in Spain are showing that the country’s economy is continuing to expand albeit at a slight reduction in pace. The preliminary quarter on quarter number for Q3 has been announced as 0.5%, this was more or less the anticipated level and compares to the final second quarter expansion of 0.6%. On a year on year basis the rate of GDP growth is now being measured at 1.6%, again this was the anticipated figure and it represents a healthy increase over the previous quarter which was revised to 1.3%.

Preliminary Spanish inflation numbers have also been published this morning and despite the clear return to growth within the economy the inflation data highlights the distance the economy still has to go. The Consumer Price Index (CPI) is showing a year on year fall of -0.1% to the month of October, although still deflationary this does represent a moderate improvement on the previous month’s reading of -0.2%. The month on month story is a little better, this figure provided a positive surprise to come in at 0.5% price expansion following a September reading of just 0.2%.

Of the major economies in the Eurozone Spain is the only one that is managing to gain any growth traction at the moment. Despite coming from a very low base, Spain was one of the worst crises hit economies, the persistence in the growth readings are impressive. The International Monetary Fund (IMF) recently upgraded the growth forecasts for this year and next for the Spanish economy but it is clear that Spain still has a lot of work to do in order to restore long term stability. Recent government projections noted that the country’s debt to GDP ration would top 100% next year before beginning to fall towards the latter part of 2017.

Share on StockTwits