Madrid, Spain (4E) – Spain’s economy expanded in the third quarter from the previous three months, emerging from a two-year recession, according to the central bank’s preliminary data released Wednesday.
Third-quarter gross domestic product (GDP) grew 0.1 percent from the second quarter, when it contracted 0.1 percent, and fell 1.2 percent in the same period last year, according to the monthly bulletin of the Madrid-based Bank of Spain. The initial estimate was in line with 37 economists’ view in a monthly survey by Bloomberg News.
While the result was expected, the growth was welcome news for Prime Minister Mariano Rajoy. Since coming into power nearly two years ago, Mr. Rajoy’s conservative government has introduced highly unpopular measures like spending cuts and tax increases in order to meet fiscal targets demanded by Spain’s European partners.
Mr. Rajoy reiterated Wednesday that the recovery from the crisis, which led to losses of 3.8 million jobs, would be a slow and gradual process.
The expansion was helped by overseas sales as domestic demand dropped 0.3 percent, according to the Bank of Spain. Private consumption climbed 0.1 percent and the decline in investment eased from the previous quarter.