Spanish Economy Crawling Out Of Recession
News Posted On: 09 September 2010
The Spanish economy is still struggling out of recession as of the second quarter. According to the latest figures from Eurostat (first estimates, following flash estimates) the Spanish economy grew 0.2% compared to the previous quarter, and contracted 0.1% compared to the second quarter of last year. This compares to growth of 0.1% on the quarter in Q1, and a 1.3% contraction on the year in Q1.
While this means that Spain is out of recession, it would really like to be back on positive territory on an annual basis, especially given the rate of contraction recorded at the start of last year. Until we see some single digit positive growth on an annual basis, we won't see any recovery in confidence in the Spanish economy.
As for the property market it is still as hard as ever to call. We have portals and agents in the UK reporting high interest in Spanish properties as people search for bargains. Meanwhile we have conflicting indices concerning the prices of Spanish properties sold, alongside still abysmally-low transaction reports.
There is certainly little to suggest that the massive 1million+ oversupply of holiday homes has been seriously cut into, despite the reports of 100% sale increases into the start of last year as developers slashed prices.
What is certain is that Spain has one of the hardest paths to recovery, economically and in the property market, and there will be plenty of bargains around for cash-rich or mortgage-friendly overseas property buyers for some time to come.
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