Despite recent reports that Spain itself was feeling “bullish” about the recession, it seems that expats living in Spain would do well to not get their hopes up and to continue to expect the recession to continue well into 2010.

The Spanish economy is struggling to catch up with the European monetary union.

Many expats living in Spain moved out to enjoy their retirement in the sun, relaxing and enjoying their hard earned pensions. I suspect that for many the concept of a offshore account never really occurred to them, perceiving it to be something for the rich or dodgy.

However a growing number of British expats in Spain are moving their pensions offshore after reform in 2006 allowed long-term expatriates to set up the Qualifying Registered Overseas Pension Scheme (QROPS).

Not good news for expats and regular travelers in Spain who travel tourist class with Iberia as they have announced they will be charging for second suitcases checked into the hold from 1st March 2010, in an attempt to lighten the planes, save fuel costs and speed up operations ….. no mention of making more money or reducing costs to passengers you note!

One issue high on every expats priority list when moving to live in Spain, when they have children, is the quality of the education that they will receive so the news that a new scheme will allow overseas schools to be accredited by the British Government for the first time will surely be pleaseing to note.

For many expats living in Spain it appears that the distressed property market, high levels of unemployment in Spain, and the weak pound have combined to shatter many a dream of enjoying the sunshine, culture and traditions of Spain. A recent survey reported that almost 75% of British expats in Spain are considering moving back to the UK.

Despite the current exchange rate which has made Spain seem much more expensive for many expats living in Spain, there is some good, if not surprising, news which despite Which? saying recently that Spain may no longer be such great value, shows that many goods in Spain are cheaper than their equivalent in the UK.

On a typical monthly shop expats in Spain can save up to 100€ on a household shop, and petrol is cheaper at 1.09€ a litre in Spain compared to 1.26€ in the UK

Although many are warning that Britain is at risk of plunging back into recession based on the remarkably low growth figures (0.1%) compared to an expected 0.4%, the 18 month recession has officially ended and early indications are that it is good news for the travel industry, and therefore one hopes for expats living in Spain hoping to see the tourism related business that so many depend on for their income pick up.

On the same day as the UK announced that it has formely exited the recession, the International Monetary Fund (IMF) have confirmed what many have been saying, that Spain will remain in recession throughout 2010, with low growth forecast for 2011.

Not before time many will be saying, but it does seem that Spain is finally waking up to the idea of using the internet, and in particular social networking sites like Twitter and Facebook to promote the country.

Turespaña recently presented a new online strategy at Fitur to ustiise the popular social networking sites to allow Spaniards to contact foreigners and promote Spain.