The Spanish economy grew slightly more than initially estimated in the first quarter of 2024, according to revised data released by the national statistical office INE.Â
Gross domestic product (GDP) expanded by 0.8 percent sequentially, a faster pace than the 0.7 percent growth seen in the fourth quarter of 2023, per a report from dpa-AFX. The initial estimate released on April 30th had shown the economy growing 0.7 percent in the first quarter.
On an annual basis, GDP growth accelerated to 2.5 percent in Q1 2024, up from 2.1 percent in the prior quarter. The first quarter figure was revised up from the initial estimate of 2.4 percent.
The expenditure components of GDP showed household consumption rising 0.4 percent quarter-over-quarter, while government spending fell 0.6 percent. Gross capital formation increased 1.2 percent. Exports of goods and services climbed 3.3 percent, and imports were up 2.2 percent.
Additionally, the number of hours worked advanced 1.3 percent annually, though it declined 0.3 percent sequentially.
Read more: Eurozone business recovery slows in June as activity hits 3-month low: PMI
Looking ahead, the Bank of Spain forecasts the economy will grow 2.3 percent for the full year 2024 and 1.9 percent in 2025. However, the bank sees the risks to this growth outlook skewed to the downside. Key uncertainties include geopolitical tensions, the trajectory of global economic growth, developments in China’s real estate sector, and conditions in international financial markets.
Moreover, the Spanish unemployment rate for the first quarter of the year stood at 12.29 percent, which was the highest level recorded in a year. This figure exceeded analysts’ expectations of 11.80 percent, indicating that Spain continues to grapple with persistently high unemployment levels.
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