Acceleration in Spain's Economy

BARCELONA, Spain - May 14, 2015 - PRLog -- At the beginning of the month the European Commission altered its former prediction for Spain’s economic growth, placing it at 2.8% GDP for this year (five tenths higher than what it predicted last February) and at 2.6% in 2016 (a tenth higher). This is due to the growth in employment rate, easing in financial conditions, increased confidence and low petrol prices.

Spain is predicted to be among the states of the Eurozone that will experience the most growth this year, above Germany (1.9%), France (1.1%) or Italy (0.6%) and at a rate that will almost double the average of other countries on the Euro (1.5%). Only Ireland and Malta (3.6%), Luxembourg (3.4%) and Slovakia (3%) are growing at a higher rate, while Lithuania is on the same level as Spain.

Maria Marquardt, head of marketing at SBL International Real Estate, states that, “This growth will hopefully be backed by improved prospects in the labour market, the easing of financial conditions and a renewed confidence, but it is also helped by a favorable external environment and by a less restrictive fiscal stance.”

She goes on to say that, “The growth in demand, the improvement of financial conditions and the expected increase in exports all favour an increase in investment. Moreover, following seven years of decline, a gradual recovery in the Spanish construction sector is bound to take place over the course of this year and 2016, as well as a rise in residential investment.”

The average price of housing registered an inter-annual fall of 1.7% last month in April, compared with the 2.8% fall of the previous month, and it has accumulated a setback of 41.2% since the maximum amounts reached in December 2007, before the crises.

According to Tinsa (Real Estate Appraisals) this was the most moderate inter-annual fall since April 2008.

Specifically, the larger cities and the coastal towns along the Mediterranean are the places that registered the most positive inter-annual growth in April, out of the whole of Spain.

The statistics from the second semester of 2013 onwards reflect a moderation in the rhythm of falling prices. The path towards stability, according to Tinsa, is a long one but one that will continue shrinking as long as expectations are met in the country’s economic growth and in the creation of jobs.