MADRID – Economic growth in Spain for the first two quarters of 2023 was higher than expected. This is evident from new data from the Spanish National Institute of Statistics (INE).
The figures show that Gross Domestic Product (GDP) increased by 0.5% in the second quarter, slightly less than the 0.6% in the first quarter. Interestingly enough, both percentages have been adjusted upwards by a tenth.
According to the INE, growth is mainly driven by domestic demand. Households recovered their consumption patterns in the first half of 2023, despite inflation causing a downward spiral in late 2022. Government expenditure and export figures are also more positive than previously thought.
Spanish GDP recovered earlier after pandemic
The INE also notes that Spain’s GDP had already recovered to pre-pandemic levels by the summer of 2022, two quarters earlier than originally calculated. This puts Spain in line with other European countries and its GDP is now even 2 points above pre-pandemic levels.
Vigilance for possible delay
This news update comes at a time when both the Bank of Spain and Airef are warning of a possible slowdown in economic growth. The Bank of Spain has even lowered its growth forecast for 2024 to 1.8%.
Following the announcement of these figures, the Ministry of Economy praised the ‘dynamism, solidity and resilience of the Spanish economy’. They emphasised that Spain remains the fastest-growing European economy, with the lowest inflation rates.