THE SPANISH economy continues to grow as mediterranean countries and northern nations start to swap economic fortunes.
Spain’s GDP rose by 0.5 per cent during the third quarter of the year as it continues its recovery which began in the second half of 2013, official data shows.
The figures mark the fifth consecutive quarter of growth. However, it is a slight slowdown on the second quarter which saw 0.6 per cent growth.
The economic performance has been strong since it reemerged from recession in the second half of 2013.
“We suspect the main contributor to growth was household consumption, which has been strengthening as a result of job creation, aided by low inflation. This should have more than offset a likely slightly negative contribution from net trade as a result of a continued rise in imports,” said economist Victor Echevarria from BNP Paribas.
Spanish inflation remains negative year-on-year but has improved – it rose to minus 0.1 from minus 0.2. Monthly inflation was more promising at 0.5 per cent following on from 0.4 per cent in September. “Spanish growth is based on solid fundamentals and we expect the economy to continue to grow in the coming quarters,” added Echevarria.