|Tepid growth pulls Spain out of recession
Spain escaped from its two-year recession in the third quarter of this year in the wake of timid growth as job destruction eased, the central bank said.
After nine straight quarters of contraction in the second trough of a double-dip recession, the euro zone's fourth-biggest economy grew by 0.1 percent, the Bank of Spain said in a report today.
The rate at which jobs were being destroyed in the recession, which has thrown millions out of work and increased poverty, eased to its slowest rate since the start of the crisis in 2008, it added, AFP reports.
“In the third quarter, the Spanish economy extended the gradual improvement that it has been observing since the start of the year,'' the bank wrote.
The data came in an economic climate “characterized by a certain easing of financial tensions and improving confidence.’’
The bank's quarterly estimates are usually confirmed by the government's official figures, due later this month.
The rate of destruction of jobs was 0.1 percent, which if confirmed would be “the least unfavorable rate since the start of the crisis'' that erupted in 2008 with the collapse of a building boom, the bank said.
The jobless rate was a huge 26.3 percent in the second quarter, according to the latest definitive figure.
Separately the economy ministry said that Spain slashed its trade deficit in August by 42.5 percent to 1.8 million euros.
Exportsgrew by 3.8 percent compared to August last year to 17.2 billion euros while imports decreased by 3.6 percent.
“As the slide in domestic demand peters out, the ongoing surge in exports will drive growth'' in Spain, wrote analyst Holger Schmieding of Berenberg bank.
“Over the course of next year, we look for a rebound in investment to add to the export gains.''