February 16, 2018

Bank of Spain estimates economy grew 0.1 percent in third quarter

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Bank of Spain estimates economy grew 0.1 percent in third quarter Reviewed by on . Rating: 4

Country emerges from recession after more than two years. Read this article from El Pais and become familiar with these economic words: recession, boost, output and growth.

 

The Spanish economy left behind nine quarters of shrinking output in the period July-September, marking an end to the longest recession the country has suffered in decades, the Bank of Spain said Wednesday.

In its quarterly report on the domestic economy, the central bank estimated that GDP grew 0.1 percent quarter-on-quarter in the period after shrinking by the same amount the previous three months, but contracted 1.2 percent from a year earlier. Domestic demand made a negative contribution to output of 0.3 percentage points on a quarterly basis, while net trade – exports minus imports – boosted GDP by 0.4 points.

The report also highlighted a significant slowdown in the decline in employment. The bank said the fall of 0.1 percent registered in the period, if confirmed, “would be the least-unfavorable rate recorded since the start of the crisis.”

“We are optimistic on the euro periphery as a whole and Spain in particular,” Bloomberg was told by Robert Wood, an economist at Berenberg Bank, which is forecasting growth of as much as 1.4 percent in 2014. “The country has made big structural changes,” he added. “It’s been engaged in a lot of deficit reduction, business sentiment is improving and unemployment is probably close to a peak.

Just under six million people are out of a job in Spain, with the jobless rate of 26.3 percent second only to Greece in the European Union.

 

Article by Andrew Sim
Click here to read the full article.

 

What does it mean? Click and find out!

to shrink (v) to become reduced in amount or value
output (n) the act or process of producing; production
recession (n) a period when trade and industry are not successful and there is a lot ofunemployment
to boost (v) to help something to increase, improve, or become more successful
unfavorable (AE) – unfavourable (BE) (adj) not positive, or not showing approval
to forecast (v) to make a statement about what is likely to happen, usually relating to the weather,business, or the economy
peak (n) the time when something is at its highest or greatest level

 

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