Data from Fourth Quarter Reveals Strengthening Spanish Economy

Data from Fourth Quarter Reveals Strengthening Spanish Economy

Everything is looking Rosie for Spain

If you were to keep a close eye on the Spanish economy, the recovery might appear to be a little slow. With the benefit of hindsight however, we see that the impressive economic turnaround the country has seen since 2014 is nothing short of special.

Spain is still suffering from low wage growth and a high unemployment rate, but you would have had your hand bitten off if you’d offered the 2016 economic data of the country to anyone – from bank manager and financial analyst to average Joe on the street – from 2010.

Spain saw a welcome increase of 3.2% GDP for two years in a row, and has now reached the point where it is doing far more than just recovering from the double dip recession. Spain is currently on course towards becoming a shining economic beacon of light in the EU.

The latest data published by the National Statistics Institute (INE) this week shows that the Spanish economy grew 0.7% over last year during the fourth quarter of 2016. This economic success was fuelled by the success seen in tourism, exports, and industry.

This performance at the end of the year continued the trend that has seen 24 months of sustained economic growth. It’s thanks to this growth that Spain has entered the top three for Eurozone economies. The country has come a long way since the days between 2008-2013 when unemployment rates went out of control, the youth fled the country in the thousands, and everyone responded with scepticism at the prospect of economic recovery.

Things have certainly changed. There is still a high unemployment rate (over 16%) but Prime Minister Rajoy and his labour reforms are helping stem the tide and improve the job market. Spain is also seeing the benefits of the economic recover across the rest of Europe, in particular the boost to Spanish tourism and real estate thanks to all the foreign money flowing in.

Economists in Malta are expecting this year to see a growth of between 2.5-2.7%, which might not be as much as in previous years, but is still a sign of the solidity that would have been just a pipedream four years ago.

Around 74,000 new jobs were created each month in 2016, and it’s expected Spain could see similar results this year. Spanish economy minister Luis de Guindos said that quarterly growth could be similar to what was seen last year. Given that the country was dealing with political strife last year and still experienced incredible growth, the estimates from economists could prove themselves to be conservative. No matter what though, it’s hard to deny that Spain has started 2017 as healthy as it's been for over10 years.

Data from Notary Reveals Spanish Property Prices Increased 5.67% in 2016

Data from Notary Reveals Spanish Property Prices Increased 5.67% in 2016

Spend enough time on the internet and you’ll be able to find some headline, statistic, or opinion that matches any kind of preconceived notion you might have. The Spanish property market is no exception.

Spanish Property continues to sell and increase from previous years

Several media outlets are all too happy to keep painting their picture of grim desperation. One source even tried to claim that Spanish property prices are in the middle of an alarming freefall.

It’s quite easy to debunk these stories, mostly because every respected economist and analyst in the country has examples of reliable data showing that property prices continue to increase across the country following 2014, when they hit rock bottom.

The actual figures might differ between establishments such as the Deutsche Bank to the National Statistics Institute, the trend is clear and unchanging; prices are on the rise, and have been so for three years now.

The latest figures published this week by the Spanish Notaries Association further confirms the trend, as it shows the average price per square metre in Spain increased 5.67% during 2016 compared to 2015.

The notary data shows that foreign interest was as strong as ever in Spain during 2016, as 13.25% of all homes sold in Spain were sold to non-Spaniards. In terms of real data, this is around 53,000 homes; 19% of which were sold to British buyers.

This means that Brits are responsible for 2.5% of every homesold in Spain in 2016; double the amount of properties purchased by the Germans; who are the second-strongest foreign market.

British Consulate Reveals Anxieties Brits Abroad Suffer From

British Consulate Reveals Anxieties Brits Abroad Suffer From.

While people may have an image of the quintessential Brits abroad but anyone who’s ever been to Spain, whether they are on a holiday or an expat, know that Brits in Spain love to go to Costa del Sol.

The expat community of Spain provides a look at Britain as a whole with a wide range of age, orientation, class, wealth and outlook. British expats are just as diverse, open-minded, adventurous and have a great sense of self-deprecating humour than every Brit at home.

Most brits settle well but some do not and are a fish out of water

It’s nice to be reminded that Brits abroad join many clubs and societies in Spain and can find themselves like a fish out of water, no matter how well they manage to integrate themselves. The Foreign and Commonwealth Office (FCO) released data that shows the different anxieties that Brits are likely to have when moving abroad.

The data is about different calls the British consulate receives, some of which border on bizarre. One standout is the poor man calling and asking where he could find some good quality bacon in his new country. A woman in Lebanon contacted the consulate to find out where she could get an English butler.

One caller in Malaga called and asked why there were so many nudists around him without realising that he had found his way on to a nudist beach in spain.

There was a British woman in Russia who contacted the consulate because she was disappointed she had not been given a guided tour by the embassy after arriving in St Petersburg.

Foreign Minister James Duddrige says that the consular staff do everything they can to help Brits who are struggling abroad. He did ask that Brits remember the consulate are there to help people who have genuine emergencies and shouldn’t be seen as directory enquiries.

He urged the public to really think about their problem before making the call as every time they deal with a call about nudists or butlers they miss the chance to help someone in a life or death situation.

It’s important for Brits to remember that in most places, especially in the Costa del Sol in Spain, there is a huge community of resident expats in Spain who are there to help you out. They can help you deal with most problems such as finding bacon. There are plenty of bars, restaurants and shops that are designed to appeal to Brits and help them find what they love best.