Growth reached 3.8pc helped by strong demand

1st February 2007, Comments 0 comments

1 February 2007, MADRID — The Bank of Spain predicted said on Thursday growth was expected to reach 3.8 percent for 2006.

1 February 2007

MADRID — The Bank of Spain predicted said on Thursday growth was expected to reach 3.8 percent for 2006.

The initial results for the fourth quarter indicated that gross domestic product reached 3.8 percent.

The bank said this was due to continued strong domestic demand and despite of "tougher financial conditions" towards the end of the year in the form of rising interest rates.

The Bank of Spain, in its regular update on the economy, said on Thursday this pattern of growth was expected to continue on into 2007.

Analysts said the improved balance of payments between imports and exports had also helped to maintain growth.

Employment was expected to rise in 2007 by three percent.

Unemployment fell to 8.3 percent last year overall.

Productivity continued to increase slowly, though.

[Copyright EFE with Expatica]

Subject: Spanish news


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