Spain’s economic recovery returns despite high unemployment

Global Business

After more than six years after the financial crash, the government of Spain, one of the world’s worst affected countries says it is starting to see real recovery.

Experts and the International Monetary Fund predict the growth could be as high as three percent this year, despite unemployment remaining high, with nearly a quarter of the working population jobless. CCTV’s Dan Whitehead reported this story from Madrid.

Spain\'s economic recovery returns despite high unemployment

Spain\'s economic recovery returns despite high unemployment

After more than six years after the financial crash, the government of Spain, one of the world's worst affected countries says it is starting to see real recovery. Experts and the International Monetary Fund predict the growth could be as high as three percent this year, despite unemployment remaining high, with nearly a quarter of the working population jobless. CCTV's Dan Whitehead reported this story from Madrid.

Experts say recovery in Spain is near.

“After six years of crisis, people are having more certainty regarding their decisions. They’ve stopped delaying some purchases of consumer products because uncertainty has greatly decreased,” Miguel Cardoso of the bank BBVA said.

Despite confidence slowly growing, every penny still counts. Those running stalls say trade is far from the pre-crisis level.

“From 2008 onwards I lost 50% of my business because of the crisis, and it hasn’t come back, it hasn’t come back.”

“It has recovered a little bit, but people are still finding it hard very hard to buy anything, they’re afraid because of the crisis and they’re still finding things hard.”

Despite the International Monetary Fund predicting Spain’s economy will grow two percent this year, unemployment is still drastically high.

The jobless figure stands at around 5.5 million – 23.7 percent of the labor force.

Charities running food banks across Madrid say they are seeing rise in demand, even from those in work…

“The problem here is that people are subsisting on very little money, so they need that to pay their rent, or gas and electricity, but then there’s nothing left over for food. Something has to go,” said volunteer Carmen Clemente Garcia.

Experts say many are struggling to get jobs because previously prosperous trades in Spain – such as construction – have been replaced with more high-tech industries, leaving thousands without adequate training.

“The government here says its program of austerity measures is finally starting to balance the books. However, it appears the public are yet to feel that recovery in their pockets.


CEO Saruhan Hatipoglu on outlook for Spain’s economy in 2015

CCTV America interviewed CEO of Business Environment Risk Intelligence, Saruhan Hatipoglu on Spain’s economic recovery.

CEO Saruhan Hatipoglu on outlook for Spain\'s economy in 2015

CEO Saruhan Hatipoglu on outlook for Spain\'s economy in 2015

CCTV America interviewed CEO of Business Environment Risk Intelligence, Saruhan Hatipoglu on Spain's economic recovery.