However, some warn that the current level of growth may not be sustainable.
“Given sky-high unemployment, the risk of deflation and the fact that public and private-sector deleveraging has further to run, a recovery led by domestic spending seems unsustainable,” Jennifer McKeown, an economist at Capital Economics, said in the WSJ article. “While Spain is set to be one of the euro-zone’s best performers this year, with GDP rising by 1% or a bit more, the recovery could yet prove to be short-lived.”
Additionally, while Spain moved to a current account surplus last year, the improved trade performance has been reversing. Spain’s international competitiveness could be diminishing as well.
“The danger thus is that many of the hard won gains of the crisis years are unwound during recovery,” according to Edward Hugh, an independent Spain-based economist.
For more information on Spain, visit our Spain category.
Max Chen contributed to this article.