Spain: A slow climb back to recovery
Following a recent investment trip to Spain, Paul Brain, head of Fixed Income at Newton Investment Management, explains why Spain is poised for a recovery.
“The Spanish economy is gradually finding its feet again. According to some economic analysts, Spain is this year even predicted to become the largest economy in the eurozone to achieve annual growth of around 30%
“While the Spanish unemployment level is still high – at over 20%- it has at least stabilised and is starting to fall. Spain’s overstretched property market has also settled and the banking system has stabilised to a point where it is once again able to provide real support to various sectors of the economy.
“Improvements in the Spanish banking sector are particularly encouraging. At a macroeconomic level, the Quantitative Easing (QE) programme of the European Central Bank (ECB) is dependent on a fully functioning European banking system. Now, after a difficult period, Spain is playing its part in helping to achieve this.