See How The Spanish Economy Boosted By Tourism and Exports in the First Quarter

See How Spanish Economy Boosted By Tourism and Exports in the First Quarter

2016 broke all record for tourism and 2017 is looking great too

Following a strong first quarter of Spain, Spanish Prime Minister Mariano Rajoy increased the economic outlook for the country. The economy was boosted by strong performances in the tourism and export industries.

The government now believes that national GDP will increase by 2.7% in 2017, up from the 2.5% expected at the start of the year. The stronger start to 2017 has been seen primarily in data about flights, hotels, and resorts showing record-breaking levels of tourism.

The Spanish real estate market is also offering encouraging interest and activity.

Rajoy said that the recent data for the first quarter of 2017, as well as forecasts both national and international, were behind the decision to revise the growth forecast.

The optimism matches the optimism shown by the Bank of Spain, which increased its own growth forecast to 2.8% GDP, putting Spain on the course to be one of the major economic performers of Europe in 2017.

The International Monetary Fund (IMF) published their own sober – if still encouraging – GDP increase. The IMF expects that Spanish GDP will increase by 2.6% this year, which would still leave the country ahead of the UK and USA for the second year in a row.

The Prime Minister expects GDP growth to continue across 2018 and 2019, leading to around half a million new jobs added each year. The result is that another million Spaniards will be in employment by 2020.

There is still some concern over the jobless rate, with Spanish unemployment sitting at 18.6%; one of the highest in Europe. Rajoy told reporters his government is planning a budget that prioritises this figure with plans to reduce unemployment below 16% by 2018.

Spanish Exports Reach All-Time High in 2016

Spanish Exports Reach All-Time High in 2016

Living in Spain is at an all time high and Spanish exports totalled €254.53 billion last year, which was not just a 1.7% increase on 2015, but also the best year ever for Spanish exports.

Everything in Spain is moving in the right direction.

Last year Spain was the best-performing country in the EU and Eurozone as a whole in terms of exports. This incredible performance also allowed Spain to reduce the trade deficit by 22.4%; bringing it to €18.7 billion; the second-best it’s been since 1997.

Imports were down 0.4% to €273.28 billion, suggesting that the country is shifting towards being more export-based; a model similar to the one Germany has. Germany has always been considered to be a country that knows how to handle business.

There was a rise in the balance between exports and imports, bringing the balance to 93.1% for 2016; another sign of this changing trade and a friendly reminder that there is demand for Spain and Spanish goods around the world.

Through posting this 1.7% year-on-year increase in exports, Spain was able to outperform the average of the EU (0..7%) and even outperformed Germany; which only managed to increase exports by 1.2%.

Exports were down during 2016 in several countries, including the UK, France, China, and the US.

The goods that were most commonly exported from Spain were ships, medicines, olives and olive oil, and electronic devices. Spain has become the third largest exporter of wine, fruits and vegetables in the world. Around 70% of the goods exported from Spain stay within the European Union.

The most popular imports of Spain, on the other hand, include machinery and equipment, chemicals, fuels, foods, and medical instruments.

Everything in Spain is on the up even buying property.