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Spain's economic growth accelerates by 1.4% in 2014

Spain's economic growth accelerates by 1.4% in 2014
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There has been a big pick up in Spain’s economy helped along by consumer prices falling further.

Preliminary figures show notable annual growth for the first time since the crash nearly seven years ago.

At the same time inflation was down one point four percent in January from a year earlier, which the government hopes will boost spending.

The first estimate from the National Statistics Institute was that the Spanish economy expanded 1.4 percent in 2014 from a year earlier, with the pace increasing in the final months.

Economic output also rose 2.0 percent in the fourth quarter from a year earlier, beating economist expectations.

GDP has risen for the last six quarters.

Businesses have benefited from lower energy costs, the weaker euro, and reduced personal and company taxes.

And the eurozone’s fourth-largest economy is no longer dependent on exports with business investment and consumer spending increasing.

After the bursting of its property bubble in 2008 Spain’s economy lost 15 percent of its value before starting to turn around in late 2013; now finally there is rising employment and analysts see indications the recovery is spreading through the wider economy.

Spain’s Economy Minister Luis de Guindos has said that the economy is likely to grow by more than 2.5 percent this year thanks to the effect of cheap oil on consumer spending and a weak euro on exports, a cornerstone to the recovery.

De Guindos has also argued that falling prices was not conducive to a destructive downward spiral as it helped boost families’ purchasing power.