Inside Spain’s economy – what’s really going on?
- Spain to achieve annual growth of 30% (Newton)
- Unemployment down 2.7% in April (Labour Ministry)
- 2015 to be ‘pivotal year’ for Spanish property market (PERE)
After years of gloom, the headlines are suddenly full of news about Spain’s bright future. Economic growth projections have been revised upward by Fitch, while Spain has been affirmed at a BBB+ rating. According to the data reviewed by Fitch, Spain’s growth in Q4 2014 reached 2% – higher than that of Germany and out-performing the Eurozone as a whole. Newton Investment Management has even noted that some analysts are predicting Spain to achieve annual growth of 30% over the coming years, making it the largest economy in Europe.
Even the unemployment rate looks to be headed in the right direction, with April seeing a record fall of 2.7%. But for those living and working inside the Spanish economy, is the picture as rosy as the current headlines would seem to imply?
“Well, yes and no!” comments Sales and Marketing Director of leading Spanish homebuilder Taylor Wimpey España. “Unemployment has fallen sharply, but still stood at 23.8% for the first quarter of the year – so that’s more than one in five people who want to work yet can’t. It’s a stark figure, but actually there does seem to be a sense that the country has turned the corner, certainly among those who run businesses here.