Spanish Economy Growing Three Times Faster than UK

Spanish Economy Growing Three Times Faster than UK

Spain continues its incredible recovery 

The New York Times is calling it the end of a the nightmare, while other media outlets took a more sedate approach to reporting the latest official economic data from the Spanish government; not only is the Spanish economy growing, but it’s growing at a much faster rate than the rest of Europe.

It’s been almost a decade – that’s ten years – since the worst economic crash since the Second World War hit Spain, leaving millions out of work and pushing thousands to just give up and leave Spain behind. Most believed that they would be displaced for the rest of their lives, a sign of just how deep the financial abyss Spain was dealing with between 2008 and 2012 was.

But the slow, steady, sometimes painful reforms to labour and the economy has given Spain the necessary power to climb out of the slumps and post economic growth of 0.9% across the second quarter of 2017.

This figure might not sound impressive, but it’s actually a sign of incredible performance; by itself as well as in a wider context. A growth rate of 0.9% is 3 times higher than the growth of the UK, and around twice the growth of France; which saw economic growth of 0.5% during the same period.

The figure is even more impressive in context, given that Spain was one of the two countries in Europe facing a double dip recession in the credit crunch. This data from the second quarter also marks the continuation of growth pushing economic growth in Spain past 3% for the second year in a row – which would make it the best performing economy in Europe.

Spanish unemployment plummeted to 26% during the worst parts of the crisis. These days unemployment has been brought down to 17.2% and it continues to fall. HIS Markit economist Raj Badiani suggests that the growth of consumer spending regained momentum during the second quarter following strong job creation and the overall financial climate.

It seems the strong performance of Spain may give some inspiration to the new President of France Emmanuel Macron, who is currently considering introducing labour reforms to France that are similar to those employed by Spain since 2010; including loosening employment laws that made it easier for companies to lay off their workers. This has had an effect of companies becoming more willing to hire new staff, knowing that they are not tied down by long-term employment contracts.

The reforms have helped boost the manufacturing sector of Spain, boosting the export economy of the country. Exports are now accounting for around a third of Spanish economic output, higher than the less-than-one-quarter seen a few years ago.

As exports are on the up, the local governments of Spain have also been able to increase tax takes, with the money spreading into the wider economy; as seen in the increase of infrastructure projects being constructed nationwide.

Spain has picked itself up and is looking healthier and more stable than ever.

It’s Official: Med Property Prices are Rising Faster than Spanish Average

It’s Official: Med Property Prices are Rising Faster than Spanish Average

The Mediterranean property prices in Spain have risen by an average of 4.4% over the past year. This is higher than the average for the nation overall.

An analysis of Spain’s property market performed by Tinsa, a real estate appraisal firm, has discovered that the value of homes in and around the Mediterranean resorts was rising faster than the average for the rest of the country.

Buying property in Costa del Sol is clearly on the up.

During the first quarter of the year property prices increased by around 4.4% on average in the Mediterranean when compared to the same period of time from last year.

This is over double the national average for the rest of the country. On average property prices have risen by 1.9%. In the more metropolitan regions there has actually been negligible change over the past year. The price trend is usually quite positive though. Prices seem to be rising month by month. They rose 0.8% between March and April after a rise of 2.1% between February and March.

Property prices on the Mediterranean also increased by 2.7% during the first quarter of 2016, compared to the last quarter of 2015. This is further evidence that the Spanish property market is stabilising while keeping property prices affordable.

The data from Tinsa also compared the property prices of today to the peak from 2007 and showed that property on the Costa del Sol is around 46% cheaper on average now compared to 2007. This represents an incredible “correction” of the market and is the most that prices of fallen over this period of time in any region.

As properties in the Costa del Sol are currently valued at higher than the national average this data would also seem to confirm suggestions that many of the properties on the market during the boom of 2007 were overpriced to some degree.

The market is far more sensible today, especially on the Costa del Sol. All of the things that made the area so appealing in the first place, such as the variety of properties for sale, the excellent infrastructure and location of the region, the climate, the healthy amount of expat-friendly locals with their rich culture, and the overall landscape of the area, are still there. Only this time the property is priced fairer and much steadier.

Any Brit looking to find an affordable property in Spain should take a look at the southern tip of the country to the areas with more affordable property prices. Take a look at areas such as Marbella and Málaga and see how property should be fairly priced.