MADRID (Reuters) – Spain posted slightly stronger growth in the first quarter than initially estimated, deviating from the general slowdown in the euro zone, final data released on Friday showed.
The Spanish economy posted a growth rate of 0.6% at the beginning of the year compared to the previous three months.
The National Institute of Statistics (Ine) had estimated in April a gross domestic product (GDP) up 0.5% in the first quarter.
“This confirms that we have already returned to a GDP level before the COVID-19 pandemic,” the Ministry of Economy said in a statement.
Spain is the European country that has been hardest hit by the health crisis, with an 11.3% drop in its GDP in 2020.
Early data points to a record year for the tourism sector as European stimulus funds finally give the economy a boost, experts say.
The Spanish economy – which is benefiting from better-than-expected consumption, solid exports and tourism – is outperforming that of the euro zone, which entered a technical recession in January-March.
Spanish GDP increased by 4.2% compared to the first quarter of 2022, Ine said, and not by 3.8% as initially announced. Growth figures for the fourth quarter of 2022 have been revised slightly upwards.
Exports continued to be one of the engines of the economy in January-March, increasing by more than 10% for the eighth consecutive quarter, Ine pointed out.
Domestic demand has shown signs of weakening in recent quarters, due to inflation and rising rates, but Ine has revised its initial figure upwards.
The services sector, which accounts for more than 70% of the economy, performed better than expected, with restaurants and retail trade up 10% from the same quarter a year earlier.
The Bank of Spain forecasts GDP up 0.6% in the second quarter and annual growth of 2.3%, against +1.6% expected three months ago. The government is counting on an expansion of 2.1% this year.
(Belén Carreño in Madrid and Joao Manuel Mauricio in Gdansk, Laetitia Volga, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
