Growth beats expectations to reach 3.8pc

6 November 2006

MADRID — The Bank of Spain said on Monday Spain’s rate of growth had risen by one point more than the previous quarter to 3.8 percent year-on-year.

The European Commission also raised its prediction for Spain’s growth.

Both figures further confirmed the economy was continuing to expanding in Spain.

Last week, economy minister Pedro Solbes said the government had upped its expectations for GDP for this year  and next.

According to the Bank of Spain, the GDP rose 0.9 percent in the past quarter.

But the economy was still struggling against a high deficit of payments and a much higher inflation rate than many other European countries.

The bank said the GDP had risen to 4.6 percent, thanks to strong domestic demand.

But a deficit in payments cut that level of growth by 1 percent. 

[Copyright EFE with Expatica]

Subject: Spanish news