Spain exits recession

 

Figures released today by the National Institute of Statistics (INE) have shown how Spain has scraped out of recession in the first quarter of 2010 showing growth of 0.1%, which has brought to an end 6 consecutive quarters of contraction.

The Spanish economy has been struggling to control spiraling public deficit, and decreased on a yearly basis by 1.3% after declining 1.8% in the previous quarter, it added in a statement.

The figures confirm the preliminary quarterly report which was released on May 12.

Spain is Europe's fifth largest economy, and entered its recession in the second quarter of 2008 as the global financial meltdown compounded a crisis in the Spanish property market, which had been a major driver for growth in the preceding years.

It has also been the last major world economy to emerge from recession.

Prime Minister Zapatero estimates that the economy of Spain will shrink by 0.3% this year, after contracting by 3.6% in 2009, before returning to growth of 1.8% in 2011 and 2.9% in 2012.

The government aims to reduce the public deficit to the eurozone limit of 3.0 of output by 2013 from 11.2% last year but many economists argue the targets are based on data that is too optimistic.