The GDP contracted 0.3% in the third quarter. We are still in a recession, but a 0.4% contraction was expected instead, and in the current circumstances, even this small difference is encouraging. Analysts predict that Spain will finish the year with a 1.3% GDP growth compared to the -1.7% that was forecasted previously.
The government believes that there are reasons to be optimistic about the development of the Spanish economy and the nation's positive trade deficit. It is also counting on private sector jobs to rebound and hoping that financial sector reforms can recharge credit markets. While these are good signs, they aren't good enough.
Nobody knows what's going on with the bailout situation, and getting financing in 2013 will not be easy. At this point, it's too soon to start celebrating.
