Spain’s annual GDP grew 4.2% in the first quarter

He Growth in Spain in the first three months stood at 4.2%, compared to 3.1% in the previous quarter. This rate is four tenths higher than previously advanced, according to a new estimate published on Friday by the National Institute of Statistics (INE).

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In quarterly terms, GDP grew 0.6%, one tenth above what was initially announced, thanks to the rebound in exports and investment. This figure, which indicates the good health of the Spanish economy, is slightly higher than that of the fourth quarter of 2022 (0.5%).

In addition, growth places Spain among the most dynamic countries in the euro zone, where the Gross Domestic Product (GDP) fell 0.1% in the last two quarters.

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The INE explains the evolution by the good performance of the agricultural sector, where the activity increased by 3.8%, as well as by the push of construction (2.4%) and industry (1%), while the services sector maintained a stable activity.

This dynamic was also favored by the rebound in exports, which grew by 5.7% after falling by 1% in the last quarter of 2022as well as business investment, which increased by 1.8% after the 3.7% drop recorded at the end of 2022.

However, the only cause for concern for the Government is household consumption, which contracted again (-1.3%, after -1.6% in the fourth quarter of 2022), despite the slowdown in the inflation, which was 3.2% year-on-year in May, after having marked an average of 8.4% in 2022.

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It should be noted that according to the Government, the good results of recent months should allow Spain to maintain a solid growth rate this year, although lower than the 5.5% figure reached in 2021 and 2022, after the collapse caused by the pandemic of covid-19 in 2020 (-10.8%).

Portfolio/AFP