Spanish economy grows by 0.8%
Spanish economy grows by 0.8% in the fourth quarter, the central bank said, quoted by Bloomberg. Thus, the country maintained the same rate of expansion as was registered in the previous three quarters.
In 2015, GDP grew by 3.2 percent, the bank said in its monthly bulletin that uses preliminary data, based on early indications.
The increase compared to the previous quarter was the highest during the period from April to June – 1%. “The modest slowdown in economic growth in the second half does not change scenarios for sustainable GDP growth over the next few quarters,” the report said.
According to indicators Spanish consumers and companies are the engine of the recovery, record low interest rates set by the ECB have an effect on the economy. Retail sales surged to 10-month high in October, while activity in the services sector in November grew the fastest of three months.
Spain’s economy is growing at the fastest pace in eight years, supported by cheap oil, favorable exchange rate of the euro and incentives program of the ECB.
“Improved financial conditions have provided a favorable environment for the cost of business and households in the autumn”, according to the central bank.
Yet after Sunday’s Mariano Rajoy’s conservatives lost about one-third of the MPs and parliament looks set to be one of the most fragmented in the democratic history of the country.
Ratings agency Fitch said it expects a long period of political uncertainty, complicated because of thwarted reforms, which can harm the development of the economy.
Spanish National Institute of Statistics is to publish its first estimate of GDP growth in the fourth quarter at the end of January.