Spain’s economy expanded 3.2 percent last year, outstripping official forecasts and far outperforming its eurozone peers, preliminary data from the National Statistics Institute showed on yesterday.
Spanish Minister of Economy, Trade and Business Carlos Cuerpo said this week the government would raise its forecast for this year from the current 2.4 percent following the annual data, which was buoyed by a tourism boom as well as a strong agriculture industry and higher exports.
Economic growth should remain robust this year and next thanks to consumer spending, boosted by falling unemployment, and investment, brokerage Jefferies said in a note to investors. Spain’s unemployment rate dropped in the fourth quarter to its lowest level in 16 years, data showed on Tuesday.
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Still, the rising cost of living and a housing crisis that has pushed prices through the roof in big cities has dented living standards despite the growth, Renta 4 brokerage head of strategy Natalia Aguirre told reporters, forecasting a slowdown in private consumption.
Analysts also point to Spain’s below-par GDP per capita in Western Europe and its snail-paced growth that clocked just about 4 percent since 2007.
The country’s economy expanded 0.8 percent in the last three months of the year from the previous three, the same pace as the quarter before.
Recently both France and Germany lowered their growth outlooks for this year to 0.9 percent and 0.3 percent respectively, while Italy expects a 1.2 percent expansion. All three are due to release GDP data today.
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