Spain Experiencing Economic Recovery

For John, BLUF:  Sometimes you just have to take the bad tasting medicine.  Nothing to see here; just move along.

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From Toronto's Globe and Mail we have an article by their European Bureau Chief, Mr Eric Reguly—"Spain emerges as Europe's economic star after years of austerity"

Here is the start (although the article touches on all the PIIGS):

Memories of the Spanish tourism downturn have vanished.  New photos of the beaches along Spain’s Costa Blanca, on the Mediterranean, barely show any beach at all, just umbrellas and human flesh, packed together like canned sardines.

Spanish tourism is at record levels – the industry was up 4.2 per cent in the first half of the year, with 29.2 million international visits – to the point some vacation spots can’t cope with the crush.  But to the Spanish government, the tourism wave is yet another sign that Spain has made a remarkable comeback.

Spain’s economy is growing faster than any of Europe’s big economies.  The International Monetary Fund forecast Spanish growth at 3.1 per cent this year and 2.5 per cent in 2016, about double the average of the 19 euro zone countries.  Of course, the centre-right government of Prime Minister Mariano Rajoy is taking most of the credit for the turnaround, citing the success of the labour and banking reforms and the fiscal tightening.  “Seeing what is happening to others right now, one has to say: It was worth it,” he said in a recent radio interview.

So, the question is, does austerity help over the long term?

Hat tip to the InstaPundit.

Regards  —  Cliff