In line with expectations, Spain’s GDP grew by a full one percent between April and June, up from 0.9 percent in the first three months of the year, according to a preliminary report on second quarter figures published by the National Statistics Institute on Thursday.
The figure represents an expansion for the eighth consecutive quarter for the Eurozone’s fourth largest economy and a boon to the ruling conservative party of Mariano Rajoy ahead of November elections.
Spain's economy has grown 3.1 percent compared to a year ago, just short of the 3.2 percent goal set by the government but an improvement on the 2.7 percent recorded in the first three months of the year.
Although a breakdown of expenditure growth was not included in the preliminary report, Spain’s recovery is being driven by a rise in consumer spending, industrial investment and increased tourist numbers.
Spain has also benefitted from lower fuel costs and a weaker euro that has helped boost exports.
While the Spanish economy is expanding at one of the fastest rates in Europe, its unemployment rate remains one of the highest in Europe despite recent signs of job creation.
Spain's budget deficit also remains stubbornly high, standing at 5.8 percent of GDP at the end of 2014. The government has set a deficit target of 4.2 percent be end of 2015 and 2.8 percent in 2016