This content is not available in your region

Exports pull Spain out of recession

Exports pull Spain out of recession
Text size Aa Aa

Spain’s economy may have turned the corner.

The latest estimate by the central bank shows the country came out of a two-year long recession in the third quarter of the year.

With stronger exports making up for declining domestic demand GDP grew by 0.1 percent from the second quarter. That was the first expansion in nine quarters.

Amid tough austerity measures and structural reforms, Spain’s economy has shrunk by 7.5 percent since the start of 2008.

The property market collapse then left millions out of work, forced a deep financial sector overhaul and mean thousands of companies went bankrupt.

But over the same period, the export sector has grown by 14.6 percent.

It now accounts for over a third of total output compared to around a fifth five years ago.

Spain’s stubbornly high unemployment rate may also have peaked.

The budget minister said this week the economy is close to generating enough growth to create jobs.

Third quarter unemployment data is due on Thursday, with analysts polled by Reuters expecting the rate to have fallen to 26.1 percent from 26.3 percent at the end of June.