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Spain’s economy is showing signs of growth despite some experts still predicting a recession.
Figures released by the National Statistics Insitute show a 1.8% growth year-on-year in the second quarter of 2008 but growth slowed to just 0.1% in the April-June period. Employment grew by only 0.4%, or 69,400 jobs, in the second quarter. The economy slowed because spending in the April-June period grew only 1.5%, with household spending rising just 1.2% and construction spending falling 2.4%, while the export sector grew 0.3%, posting its first positive numbers since the first quarter of 2001. The Economy and Finance Ministry said after the release of the INE figures that Spain was still growing faster than the other countries in the Euro zone. However, a US-based credit-rating agency said the Spanish economy was headed for a recession and the measures taken by the government would not have an effect until early 2009. S & P said Spain would experience “at least” two consecutive quarters of negative growth - the classic definition of a recession. Images and text supplied by Tenerife News, edition 358.
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