Boost from exports helps Spain edge out of two-year recession

Julian Harris
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SPAIN has finally escaped from two years of recession according to data released yesterday by the Eurozone state’s central bank.

Spanish GDP edged up by 0.1 per cent during July to September, the Bank of Spain has estimated.

Yet output in the third quarter was still 1.2 per cent lower than a year earlier, it said.

Broader economic recovery may be behind the improvement in Spain’s fortunes, with exports fuelling the lift in GDP.

Exports during January to August this year were up 6.6 per cent from January to August compared to a year earlier, separate data from the country’s economy ministry showed yesterday.

Prime Minister Mariano Rajoy is battling with a deficit that was the equivalent of 10.6 per cent of GDP last year.

“As the slide in domestic demand peters out, the ongoing surge in exports will drive growth,” said Berenberg’s Schmieding yesterday.

“After an estimated 1.2 per cent contraction in [Spain’s] GDP for 2013, we expect 1.4 per cent growth next year.”