In 2016, the Spanish economy outperformed all the forecasts made by expert organizations, which had been expecting a slowdown in the early part of the year. Instead, the Spanish economy grew 3.2% in 2016, the same pace as the previous year, according to preliminary figures released on Monday by the National Statistics Institute (INE).
And why? Well, for the most part it was the hard work, stoicism and positivity of Spain’s population that helped the country through the worst of it, aided by some tough but effective government reforms that have livened up the labour market.
The country’s National Statistics Office (INE) reported this week that in the fourth quarter of 2016, Spain’s GDP rose a further 0.7%, meaning last year was one of the best-performing years economically for the country for more than a decade.
The momentum of growth began in the third quarter of 2013 following more than three straight years of contraction. And since the upturn began, growth has steadily increased, falling only slightly on the odd quarterly occasion when the pace of economic recovery slowed.
And preliminary figures for 2017 show that economic output is doubling and even tripling growth figures in most other EU member states. However, this is not expected to keep up.
“Most forecasts are talking about a slowdown to somewhere around 2.5% due to more adverse external conditions, to which other changing factors must be added such as the behavior of inflation, which could affect competitiveness, or financing conditions,” says José Ramón Díez Guijarro, chief economist of Bankia’s analysis services.