Spain's economic growth exceeded forecasts for 2016 thanks to 'more international' business focus

THE national economy grew by 3.3% in 2016, according to government data released during the Spain Investors Day forum (pictured left with King Felipe VI opening the seminar).

This means a slight improvement on 2015, when the economy increased by 3.2% - a figure which was also predicted for 2016 and has been beaten.

Forecasts for 2017 are for a 2.5% growth, but based upon the last two years' performance, the government believes the Spanish economy will probably beat its target for this year, too.

Manager of the economy office in the Moncloa Palace – Spain's answer to the White House and 10 Downing Street – says the 'foundations' for the country's economic structure are 'sound' and 'positive'.

In purely economic terms, this means the financial crisis is now history, although with more than one in five of the working-age population out of a job and 22.1% of households living in poverty, it will take considerably longer before this positive effect starts to filter down to ordinary people.

This growth has been partly helped by inflation remaining low in the last few years, helping to increase Spain's GDP and making the country more competitive in general, whilst reducing the State deficit from the 9% recorded in 2011 to a predicted 3.1% in 2017.

Exports are also up, and the tourism industry is booming with 70 million holidaymakers having travelled to Spain in 2016, the equivalent of 150% of the country's own population.

King Felipe VI, in his inaugural speech, said Spain had 'overcome the financial crisis' by 'managing to transform its model of growth', making the country and its markets 'more open and international'.

In his talk, entirely in English – in which he is fluent, having studied in high school and university in the USA – the monarch said these improved figures were 'thanks to the hard work and contribution of all the population', as well as to Spanish companies making a more concerted effort to go multi-national, expanding their 'abilities, prestige and leadership in every corner of the world'.

Foreign businesses investing in Spain have also helped greatly, as well as generating employment, exports, and 'cementing a new growth model based upon an open and innovative economy', says HRH Felipe.

“All of this has helped improve the business climate in Spain,” he concluded.