Spain emerges from recession in Q3
2013-10-23 17:12:31
The Spanish economy has finally returned to growth in the September quarter, after staying mired in a recession for more than two years, as the ongoing improvement in global economic conditions lifted the country's exports.
The latest estimates from the Bank of Spain showed on Wednesday that gross domestic product edged up 0.1 percent sequentially in the third quarter, offsetting the second quarter's 0.1 percent contraction.
The economy has been improving gradually since early this year on the back of rising confidence and an easing in financial stress, the bank said in its quarterly bulletin on Wednesday.
The recovery was underpinned by a 0.4 percent rise in exports and a 0.1 percent growth in private spending. These increases were partially offset by a 0.3 percent decline in domestic demand and a 0.1 percent fall in investment.
Separate data released by the Economy Ministry today showed exports climbed 3.8 percent annually in August as the ongoing economic recovery in the rest of Europe boosted demand for Spanish goods. Shipments to the European Union climbed 11.8 percent, and those to the euro area rose by 9.9 percent. In the first eight months of the year, exports grew 6.6 percent from a year ago.
On annual comparison, however, the GDP continued to record negative growth, but fell at a slower rate of 1.2 percent than 1.6 percent in the June quarter, the Bank of Spain report showed.
The International Monetary Fund said this month that Spain is likely to contract less this year compared to the earlier projection and grow slightly faster in 2014. The lender expects the economy to shrink 1.3 percent this year and grow 0.2 percent in 2014.
With improving economic activity, the rate of fall in Spanish employment eased notably to 0.1 percent during the three months ended September from the preceding quarter, marking the weakest fall since the start of the economic crisis, the bank noted.
Earlier this month, a report released by the Labor Ministry showed that Spain's unemployment growth eased in September to the lowest level since June 2007. However, the country's jobless rate hovered around 26 percent in recent months, and remained one of the highest in Europe.
Underscoring the upturn in overall economy activity, the latest purchasing mangers survey for the Spanish manufacturing sector, compiled by Markit economics, showed that the sector expanded for the second successive month in September, after shrinking for twenty-seven months in a row.