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Spain's economy is booming

Apr 30, 2015, 12:32 IST

Spanish GDP for the first quarter of 2015 was just announced, and it was even better than expected - GDP rose by 0.9%.

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In comparison, that's three times as fast as the UK managed in the same period, and 18 times as fast as the US' wintry Q1.

The country is quickly becoming Europe's star performer, and this is its fastest growth since 2007, based on a retail boom. Analysts were expecting a 0.8% expansion.

Spain's economy is still coming from a pretty low level - just a couple of years ago it was regarded as one of the harder-hit periphery nations of Europe.

Today, it's held up by European instituions as an example of how to reap the benefits of difficult reforms - but with unemployment still over 20%, that's probably not much relief to many Spaniards.

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Economists are also forecasting eurozone growth as a whole to come in at 0.5% this quarter - but some project a larger expansion.

Dutch bank ABN AMRO suggested that the growth could be as high as 0.7%, driven by consumer spending and lower fuel prices. The bank's model actually suggests an even faster rate of growth, running at more like 1%.

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