Hurrah! The Spanish economy grew 0,1% in the last quarter according to todays economic data.
Meaning the recession has ended, and the champers can come out.
Turns out the growth in the economy is because Spain is now one of the cheapest nations in the EU for labour costs, and all the growth is in things being built and shipped abroad for better performing nations. Internal growth is still flat-lining, consumer confidence continues to fall, no new jobs are being created (although some are being filled, a different proposition) and real time salaries continue to fall. Although factory investment is up slightly.
Spain now has the highest export balance since 1971, meaning it’s exporting more than it imports. (Those cheap factories again).
What this actually means is that Spain is now the Vietnam of Europe. Cheap labour costs + high unemployment means (mainly foreign owned) factories are churning out stuff (and farms! Don’t forget the watermelons!) for export back to the richer EU nations. So even if Spain does start to see job creation again, they’ll be low paid factory jobs.
But never mind all that. The recession has ended and the politicians have succeeded in pulling us through! Wee hee!