Recent financial data suggests that the worst is over. On Wednesday, Brussels approved the 2013 annual deficit numbers that Montoro presented (Spain finished the year with a 6.6% deficit) and yesterday the Bank of Spain said that our GDP was the best it has been in six years, growing by 0.4% since last quarter and 0.5% year-to-year.
The improvement since last year is critical, because it means that the economy is picking up momentum thanks to increased private spending and greater capital investments. To cap off the good news, the Bank of Spain also thinks that deflation risks are minimal. The sum message is that we should feel more confident than ever that the recovery is around the corner -- provided that government carries out pending reforms.
