Spain's economic growth picks up but still falls short of pre-pandemic levels
Spain's economic growth picked up slightly in the first quarter, preliminary data showed Friday, as rising exports offset a fall in domestic consumption.
Gross domestic product expanded by a higher-than-expected 0.5 percent from January to March, up from 0.4 percent in the previous quarter, statistics agency INE said.
The Bank of Spain and many economists had expected the eurozone's fourth-largest economy to grow by 0.3 percent in the first quarter.
"The Spanish economy continues to grow strongly," Economy Minister Nadia Calviño told reporters, adding this will allow Spanish GDP to "quicky" return to its pre-pandemic level.
The growth was fuelled by a 5.8 percent increase in exports in the first quarter, which offset a 1.3 percent fall in household consumption as rising prices caused people to curb spending.
The Spanish economy is now only 0.2 percent below the growth registered in the last quarter of 2019, the last without effects of the Covid-19 pandemic.
ING economist Wouter Thierie predicts the Spanish economy will be buoyed this year by the continued rebound in its key tourism sector after the Covid-19 pandemic.
"Right now, the difficult economic backdrop seems to be having little impact on the travel intentions of foreign visitors," he wrote in a research note.
The Spanish government predicts the economy will expand by 2.1 percent this year.
The Bank of Spain sees growth of 1.6 percent while the International Monetary Fund predicts an expansion of 1.5 percent.
Consumer prices in Spain rose 4.1 percent in April, up from 3.3 percent in the previous month, due to an uptick in fuel prices, INE said in a separate statement.
But Spanish inflation remains much lower than when it peaked at a record 10.8 percent in July, and remains below the eurozone average.
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Gross domestic product expanded by a higher-than-expected 0.5 percent from January to March, up from 0.4 percent in the previous quarter, statistics agency INE said.
The Bank of Spain and many economists had expected the eurozone's fourth-largest economy to grow by 0.3 percent in the first quarter.
"The Spanish economy continues to grow strongly," Economy Minister Nadia Calviño told reporters, adding this will allow Spanish GDP to "quicky" return to its pre-pandemic level.
The growth was fuelled by a 5.8 percent increase in exports in the first quarter, which offset a 1.3 percent fall in household consumption as rising prices caused people to curb spending.
The Spanish economy is now only 0.2 percent below the growth registered in the last quarter of 2019, the last without effects of the Covid-19 pandemic.
ING economist Wouter Thierie predicts the Spanish economy will be buoyed this year by the continued rebound in its key tourism sector after the Covid-19 pandemic.
"Right now, the difficult economic backdrop seems to be having little impact on the travel intentions of foreign visitors," he wrote in a research note.
The Spanish government predicts the economy will expand by 2.1 percent this year.
The Bank of Spain sees growth of 1.6 percent while the International Monetary Fund predicts an expansion of 1.5 percent.
Consumer prices in Spain rose 4.1 percent in April, up from 3.3 percent in the previous month, due to an uptick in fuel prices, INE said in a separate statement.
But Spanish inflation remains much lower than when it peaked at a record 10.8 percent in July, and remains below the eurozone average.
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