- Ignacio del Torre, economist at financial advisory firm Arcano
Europe is finally gaining momentum. While Germany is still leading the recovery, other major economies are starting to show signs of improvement. Hence, Europe's fourth largest economy, Spain, escaped from a two-year recession in the third quarter, posting timid growth as job destruction eased slightly. Spain's economic output advanced 0.1% between July and September, from the second quarter, when it contracted 0.1% and fell 1.2% annually. Wednesday's data are only preliminary, however, it matches the median estimates made by analysts, while the country's National Statistics agency INE will publish official data on October 31. The economy has been struggling to grow ever since the credit crisis began in 2008.
Spain's central bank said the economy benefitted from stronger exports. It is expected that shipments added 0.4% to third quarter growth, while internal demand cut off 0.3% from GDP. The economy has been one of the nations worst hit by the fallout from financial crisis and recent data are suggesting the worse is over. Figures also showed the rate of destruction of jobs stood at 0.1% over corresponding period, the least since 2008. Nevertheless, the unemployment rate hovers above 26%, one of the highest in the whole region. Unpopular austerity measures are finally paying off, and according to the government the end of the recession is near.
© Dukascopy Bank SA