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There are signs of life starting to re-appear in the Spanish economy; figures from the National Statistics Institute (INE) show that in Q1 this year the economy expanded by 0.4%, marking the third consecutive quarter of growth. Meanwhile, growth for this year is forecast at 1.2% to be followed by 1.8% in 2015.
Furthermore, a consumer confidence index published by the Centre for Sociological Research (CIS) increased 4.4 points in June to reach levels similar to those before the recession, boosted by inflation of just 0.1%. However, there is still a long way to go before a recovery can be considered; unemployment, which stands at 25.1%, is the second highest in the Eurozone while youth unemployment is currently 54%. In regards to the property market there are two very different markets functioning, with prices rising in prime coastal areas and large cities but still falling in less desirable areas. In June, Sociedad de Tasacion reported a 2.5% fall in house prices across Spain, although this does mark a noticeable improvement on the 15% fall a year earlier. Real estate construction fell 2.1% in the first three months of 2014 but away from the prime locations thousands of new homes and unfinished
projects lie dormant.