Spain has exited recession with the narrowest of margins.
The country’s economy grew by 0.1% in the last three months, edging the economy out of the recession which stalked the nation for the last two years.
Spain’s emergence from recession has dovetailed with renewed interest from investors – last week Bill Gates announced he would purchase a 6% stake in Spanish construction company FCC.
It was an increase in foreign investment which helped push the economy out of recession, along with healthy exports and a strong tourist season.
Spain’s borrowing costs have also recently fallen sharply.
At the same time, however, domestic spending is still very low, exacerbated by the 26% unemployment rate.
The government has admitted that while the recession may have technically ended, it will be years before Spain fully recovers from the economic crisis.
It was the nation’s worst recession since it transition to democracy in the mid-1970s.
Some economists have urged caution has the economy had exited recession twice before, in 2010 and 2011, before slipping back. They insist that reforms must be undertaken to ensure sustained growth and curb unemployment.
Nevertheless, eurozone leaders breathed a sigh of relief at the good news as it seemed less likely now that Spain will need a bail-out.
