The Bank of Spain's governor, Luis María Linde, says that as soon as Q3 the economy could start to show signs of growth. His view echoes comments made by Prime Minister Rajoy and Economic Minister Luis de Guindos. Strong foreign trade and falling salaries have propelled growth, but there are doubts about how long it will stick around.
For example, it's necessary to boost exports in order to compensate for the equal and opposite increase in exports.
And we also need to garner support from the EU on funding to help with young worker unemployment by providing financing for small- and medium-sized businesses. Without credit, a fat public sector and inefficient tax system could stymie any latent chance of a recovery.
