Spain is the 13th largest economy in the world, based on gross domestic product.
And whilst some European countries have struggled since the financial crash, Spain's economy has remained fairly stable. This has led to Spain becoming richer than Italy, a country they had lagged behind for many years.
If you are thinking about investing in property you are more than likely interested in knowing the latest trends in Spanish economics and the impact this is having on house prices.
So read on as we take a closer look at what is happening with the economy in Spain.
The Growth of the Economy in Spain
The 2008 financial crisis had a huge impact on economies all over Europe.
Spain took time to recover from that impact, but in recent years the economy has been strong. The first quarter of 2018 showed growth of 0.7%. This marked the 18th consecutive quarter of positive growth. The overall growth for 2017 was 3.1%, slightly down from 3.3% in 2016.
The projections are that the economy of Spain will continue to grow throughout 2018 and 2019, although perhaps at a slightly slower rate than in previous years.
The main driver of growth has been private consumption. Increasing employment and the availability of credit, coupled with fairly low inflation has aided consumer spending.
So far, the struggle for Catalonian independence does not seem to have impacted on the economy in any tangible way.
Unemployment Rates in Spain
A key component of strong consumer spending has been increasing levels of employment.
After reaching a peak in 2013, unemployment has been steadily in decline currently hovering at around 18%.
Job creation has been strong, which coupled with good levels of competitiveness internationally has led to significant employment growth. Construction and agriculture have seen the largest increases in employment levels.
Based on current predictions, unemployment is expected to reach 15.4% by the end of the year and 14.4% in 2019.
The Housing Market in Spain
House prices in Spain had been declining for the best part of a decade, but are finally beginning to grow again.
2016 marked the first sign of things turning around, with a slender 1.67% increase. 2017 showed the highest growth in ten years, with prices rising by 4.47%.
Demand for houses continues to grow, up nearly 15% in the last year. This was driven in part by purchases from abroad as people invest in holiday properties.
The predictions are that Spain's housing market will continue to grow, with sales predicted to rise by 10% or more in the coming year.
A Great Time to Invest in Property in Spain
With the economy in Spain looking strong and housing prices just beginning to rise again this is the perfect time to invest.
We have a range of properties available, whether you are looking to buy or simply to rent. We also have a selection of other great articles packed with all the information you could ever want to know about owning property in Spain.
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