Spain’s economy beats forecasts despite continuing political uncertainty

3rd May 2016, Comments 0 comments

The economy is expected to grow 2.7% this year.

SPAIN’S economy grew faster than experts predicted in the first quarter of 2016.

Gross domestic product grew 0.8%, 0.1% higher than the forecasts

The growth continued despite ongoing political deadlock, which has seen Spain without a majority government since December.

Mariano Rajoy’s acting government predicts Spain’s economy will grow 2.7% this year, before slowing to 2.4% in 2017.

The news comes as the country’s manufacturing industry also maintained expansion.

Spain’s Markit’s Purchasing Managers’ Index (PMI) rose to 53.5 in April, up 0.1 from March, securing 29 consecutive months of growth.

But despite the encouraging figures, analysts warn the continuing political drama could spell trouble ahead.

The amount of new orders and employment figures are already slowing down as the uncertainty breeds doubt among investors.

 

© Olive Press Spain 

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