Spain's econ­omy to keep grow­ing at around 1pc in third quar­ter: min­is­ter

The Pak Banker - - BUSINESS -

MADRID: Spain's econ­omy will grow in the July to Septem­ber pe­riod at a sim­i­lar pace to pre­vi­ous quar­ters, boosted by a busy tourism sea­son and con­sumer spend­ing, the econ­omy min­is­ter said in com­ments pub­lished on Sun­day.

Spain has re­cov­ered from a deep re­ces­sion and the econ­omy is grow­ing at one of the fastest rates in the euro zone, ex­pand­ing by 0.9 per­cent quar­ter-on-quar­ter in the first three months of 2015, and by 1 per­cent in the sec­ond quar­ter. Min­is­ter Luis de Guin­dos was quoted as say­ing that growth would be "very sim­i­lar" in the third quar­ter. In an in­ter­view pub­lished on Efe's web­site, he pre­dicted Spain's tax take would also keep grow­ing, help­ing the turn­around.

He said the gov­ern­ment, which has brought in per­sonal in­come tax cuts, would not be chang­ing the 21 per­cent VAT rate it in­tro­duced for cul­tural goods and ser­vices, which the arts in­dus­try has de­nounced as too high. Spain's cen­ter-right gov­ern­ment is bank­ing on the eco­nomic turn­around to win back vot­ers ahead of a gen­eral elec­tion due by year end. Polls show the rul­ing Peo­ple's Party risks los­ing its ma­jor­ity in par­lia­ment af­ter cor­rup­tion scan­dals and spend­ing cuts. Spain still has the sec­ond-high­est un­em­ploy­ment rate in Europe af­ter Greece, at 22.4 per­cent.

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