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Ratings agency S&P more optimistic about Spanish economy

Spain and other troubled Eurozone economies like Portugal and Ireland could recover quicker than expected say S&P.

The rating agency S&P suggest that troubled economies on the periphery of the Eurozone, like Spain, Portugal, and Ireland, might recover quicker than originally thought thanks to their brutal economic adjustments. Falling costs and rising competitivity driving export growth are grounds for more optimism for 2013.

“The debtor nations of the Eurozone are progressing with greater speed than originally forecast in rebalancing their economies thanks to an increase in exports,” say S&P.

Spanish exports have increased by 19pc since 2008, which is “particularly impressive for such a big economy.” As a result the current account deficit is positive for the first time in fourteen years, and falling labour costs will soon encourage firms to start hiring again.

Any sort of stabilisation or improvement on the economic front would be good news for the Spanish property market. There is no chance of a property boom anytime soon, but a few years of stable prices and increasing home sales would be most welcome.