Wednesday,6 July 2022
Euro-Ibero-American space for dialogue on social, professional and academic innovation
HomeInformationEconomicsSlight improvement in Spain´s economy
Spanish unemployment

Slight improvement in Spain´s economy


The Spanish economy contracted 0.10 percent in the second quarter of this year, an improvement of 0.40 percent compared to the first quarter. The economy contracted 1.8 percent on a year-on-year basis, the Bank of Spain Economic Bulletin said.

The decline in consumer spending eased "very slightly" in the second quarter, coming in at -0.60 percent, compared to the -0.70 percent figure posted in the prior three-month period, amid the continuing adverse financial conditions affecting both households and businesses, the Bank of Spain said.

Economists still believe any recovery in Spain will be muted.

“Recent data flow has shown quite an improvement… consistent with some stabilisation in GDP, but not yet consistent with growth,” economist at Deutsche Bank Gilles Moec said. "The Spanish government is still very far from completing its fiscal adjustment, so there will be a ceiling on domestic demand for two or three years.

The experts also thing that while the recession may be nearing an end, job creation could still be months away.

Spain has been mired in a deep recession since 2008 due to the financial crisis caused by the bursting of the real estate bubble. Spanish unemployment in the first quarter was a record 27 percent, though is expected to fall for the first time in almost two years in the second, helped by a strong tourist season.

Of interest