Spain’s Unemployment Rate Declines

By Joao Manuel Vicente Mauricio
(Reuters) – Spain’s unemployment rate in the fourth quarter fell to its lowest in more than 16 years, data from the National Statistics Institute (INE) showed on Tuesday, as the economy outperforms its neighbours.

The unemployment rate decreased to 10.61%, down from 11.21% in the previous quarter, marking the lowest level since the second quarter of 2008, when it stood at 10.36%, according to INE.

Economists polled by Reuters had forecast that Spain’s unemployment rate would fall to 11.10%.

Spain added 468,000 net jobs over the past year, with more than 90% of these jobs concentrated in the services sector, reflecting a booming tourism industry.

The Economy Ministry is set to raise its gross domestic product (GDP) growth target for this year above 2.5%, as stated by Economy Minister Carlos Cuerpo on Monday. This outlook is in stark contrast with the weak growth forecasts recently released for other large eurozone economies like France and Germany.