Although economic indicators in the eurozone remain sluggish, Spain sets new records. The country’s economy has recorded the strongest growth since 2007, and the government expects the economy to advance by 3.3 percent this year. In the April to June period, Spain's GDP growth came in at 3.1 percent compared to a year earlier. Not only austerity helped to achieve such a level. According to independent experts, Spain has taken some momentous steps betting on the most unpopular measures. Importantly, the global financial crisis plunged the country into recession. The situation was really grim: real estate market crashed, unemployment rate, which is one of the main problems then-and-now, rose above 25 percent, and a wave of bankruptcies undermined market participants' credibility. As a result, Prime Minister Mariano Rajoy had to agree to implement austerity measures including reduction of wages in the public sector and elimination of benefits. Officials also increased the VAT from 18 percent to 21 percent. The result was not slow to arrive. Currently, the recovery in economic growth is observed. Low inflation, the cheap euro, a fall in energy prices and the resumption of financial stability in Europe supported consumer spendings and the housing market in Spain. In addition, travellers gave preference to Spain this season partially because Greece is going through hard times.
