The Spanish economy maintained solid pace of growth in the third quarter – Yahoo Finance Spain

MADRID (Reuters) – The Spanish economy remained in the period July-September from a pace of growth similar to that of the previous quarters, in line with what has already been anticipated by the minister of Economy in office, and the Bank of Spain.

According to the National Institute of Statistics Friday, GDP grew in the third quarter to 0.7 percent from the second quarter, when it advanced to something more, a 0.8 per cent, relying on the strength of the tourism sector and a gradual recovery of employment.

Analysts suggest in a report published on Friday that despite the multiple challenges at the international level, the Spanish economy will continue to benefit from low interest rates, abundant credit, and a price of oil relatively low.

“will Continue at a good pace, the creation of employment. To date, it has recovered one of every three jobs lost during the crisis,” said these analysts.

In terms of year-on-year, the GDP growth in July-September was 3.2 percent, below the 3.4 percent in the second quarter. This last figure was revised Friday to the upside, from an increase estimated initially at 3.2 percent.

The estimate of the analysts was an increase quarter-on-quarter to 0.7 per cent and 3.1 per cent year-on-year.

The Bank of Spain projected to the end of September that it expected a quarterly growth of 0.7 percent in the third quarter after 0.8 percent in the second, while the minister of Economy functions, Luis de Guindos, said that third quarter growth would be similar to that of April-June.

The same De Guindos said recently that the Spanish economy could grow this year, higher than the 3.1 percent forecast by the International Monetary Fund, and the official screening, even from 2.9 percent.

The Bank of Spain, for its part, rose in September its forecast to 3.2 percent for this year, in line with the pace of growth last year, by the pull of consumption and the boom in the tourism sector.

Despite this solid growth of the Spanish economy, De Guindos has said that Spain will be in breach its deficit target in 2017 if not approved a new budget for the next year, due to the political blockade of the last ten months that has so far prevented the formation of a government.

The institutional paralysis will end is expected this weekend with the inauguration of the acting president, Mariano Rajoy, thanks to the abstention of the Socialist Party.

“Is eliminated as an element which is clearly adverse to the economic growth. Now the challenge is to reach agreements and move forward the many decisions and pending reforms,” said Axesor.

One of the most urgent tasks of the new Executive will be to continue the consolidation of public accounts and reduce the unemployment rate, which, as a result of the crisis are still about 20 per cent, one of the highest in the eurozone.

(Information for Tomas Cobos; edited by Emma Pinedo)