Spain has been growing very strongly for more than three years – roughly twice as fast as Germany, which is perceived mostly as the growth engine of the euro area. Our KfW Research Business Cycle Clock shows, however, that much of Spain’s growth is primarily an urgently needed recovery following a very serious dual crisis – the financial crisis from 2008 and the debt crisis from 2010.

The economic achievements of the past three years have now almost closed the output gap, and many of the consequences of the crisis have been overcome. But there is still work to be done to consolidate the budget. Spain’s debt levels have tripled in ten years, and it is foreseeable that the ECB will gradually normalise monetary policy. The task of reducing debt will grow in importance against this background.

In its fourth year, Spain’s recovery has overcome many crisis effects(PDF, 43 KB, non-accessible)