A new study from independent financial advisors Arcano, forecasts that the real estate and construction sectors together with household and company financing will prove to be a potent shot in the arm for Spain’s recovering economy in 2015.
Entitled The Case for Spain III, the report envisages a revival of the residential building industry as well as house prices, fuelled by the return of foreign investment, an upturn in domestic demand, improved financing and an increase in mortgage approvals – all of which will act as a catalyst for new build projects to get off the ground.
The authors of the study point out that Spanish banks’ growing willingness to grant loans once more is down to the significantly improved solvency and liquidity of the system since late 2013, with economic growth being supported by the flow of new credit both to households and SMEs alike.
Also factoring in the depreciation of the euro against the dollar, as well as falling fuel prices and the ECB’s fiscal policy and monetary stimulus, the report advocates that Spain’s economic growth next year could well be higher than the 2 per cent foreseen by the Government.
Courtesy: Carolyn Mowlem
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