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Spain's domestic demand continues to grow: Bank of Spain

Xinhua, May 26, 2015 Adjust font size:

Spain's domestic demand continued to grow in the first quarter of the year, according to recent data unveiled on Tuesday by the Bank of Spain, or the country's central bank.

The Bank of Spain, which just published its monthly economic bulletin, said economic expansion continued thanks to a rise in domestic demand, especially led by private consumption. The bank pointed out that investment in houses is recovering along with household consumption.

Regarding employment, the bank said indicators had improved, namely, that more people were affiliated with the social security system and more people had found jobs in the main sectors of activity, especially in agriculture.

Meanwhile, Tuesday also saw the ratings agency, Moody's, predict a 2.7-percent growth for 2015 and a 2.2-percent gross domestic product (GDP) expansion for 2016 in Spain. However, it warned that political uncertainty could be an issue after the results of local and regional elections in Spain.

Moody's also said the high level of public debt continued to be a negative factor.

The ratings agency expected Spain's public deficit to fall to 4.5 percent in 2015 and to 3.5 percent in 2016 thanks to an increase of tax revenue, while public debt was expected to peak in 2016 surpassing 100 percent of GDP, but would then start falling. Endit