SPAIN’S economy is at its highest annual rate in five years thanks to the country’s booming construction industry, according to government figures.
Economic growth grew 3.8 per cent between July and September 2006 – faster than the economy of France, Germany and Italy.
Earlier this month, a government report said almost half of the country’s recent growth was fuelled by immigration – with many migrants to Spain working in the country’s construction industry.
According to figures released by the National Statistics Institute, Spain’s annualised growth rate was 3.6 per cent in the first quarter of this year followed by 3.7 per cent between April and June.
However, economists believe the rate of Spanish growth is now peaking. Officials from the European Central Bank have warned continuing hikes in interest rates may lead to a drop in demand in Spain’s building sector.