The Spanish economy grew in the second quarter between March and June at its highest rate since before the financial crisis.
Outpacing most of the eurozone, the growth was helped by continually falling prices stimulating domestic demand.
GDP jumped by 0.6% in Q2, putting an end to six years of crippling recession, and the jobs market started to pick up. Now four whole quarters into recovery, year-on-year GDP growth is 1.2%.
With inflation still falling Spain’s borrowing costs are now at an historic low, but there is a caveat. Sustained low inflation increases the real burden of debt.
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