Spain's economy grew 5.5% in 2022 after faster-than-expected last quarter




  • In Business
  • 2023-01-27 08:53:21Z
  • By Reuters
 

By Belén Carreño

MADRID (Reuters) -Spain's gross domestic product grew a faster-than-expected 5.5% in 2022 as the country avoided a recession in the final quarter despite fears of a global slowdown, official data showed on Friday.

Spain's GDP grew 0.2% in the fourth quarter from the previous quarter and 2.7% from the same quarter in 2021, the National Statistics Institute said on Friday.

Public spending drove the economy in the last quarter of the year, compensating for a contraction in private consumption and allowing Spain to notch a seventh consecutive quarter of growth.

Analysts polled by Reuters had forecast 0.1% quarter-on-quarter growth and 2.2% year-on-year expansion.

The final GDP data beat both the original official forecast for the year, which was 4.5%, and the 5% anticipated by Prime Minister in late 2022. The statistics agency also revised up previous quarters.

Madrid expects GDP growth will slow to 2.1% in 2023, though many analysts expect a sharper slowdown.

Unemployment data released on Thursday showed a rise in the jobless rate in the last three months of 2022 as employers anticipated a slowdown.

Spain has already received 31 billion euros ($33.69 billion) of European recovery funds, which started to flow into the economy in the last quarter.

Exports, one of the driving forces of the Spanish economy in 2022, came to a screeching halt in the fourth quarter as the global economy slowed. Retail, hotels and restaurants also ended their growth streak.

The Spanish economy shrunk 11.3% in 2020 when the pandemic shut down tourism, and the economy has not yet fully recovered to pre-Covid levels.

($1 = 0.9202 euros)

(Reporting by Belén Carreño and Marta Serafinko, editing by Inti Landauro and Christina Fincher)

COMMENTS

More Related News

The US interest-rate decision the world is watching
The US interest-rate decision the world is watching

Can the Federal Reserve continue to raise interest rates in the middle of a banking panic?

What does the Credit Suisse purchase mean for the global economy?
What does the Credit Suisse purchase mean for the global economy?

How will the investment bank's acquisition by UBS alter the markets?

Activists demand EU halts
Activists demand EU halts 'green' funds for Spain ski resort
  • US
  • 2023-03-20 10:22:53Z

Spanish environmental groups on Monday called on the European Union to open an inquiry into the approval of 26.4 million euros ($28.1 million) of "green...

Gold Drops But Other Commodities Muted on Credit Suisse Rescue
Gold Drops But Other Commodities Muted on Credit Suisse Rescue

(Bloomberg) -- Commodity markets gave a muted response to a dramatic weekend of intervention by authorities that saw UBS Group AG agree to buy Credit Suisse ...

Five Key Charts to Watch in Global Commodity Markets This Week
Five Key Charts to Watch in Global Commodity Markets This Week

(Bloomberg) -- Here are some notable charts to monitor in commodities markets over the coming days.Most Read from BloombergUBS to Buy Credit Suisse in $3.3...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business