Thursday. 07.12.2023

Spain's economy expanded less than estimated in the first quarter, final data from the statistical office INE showed on Friday.

Gross domestic product grew 0.2% sequentially, slower than the 0.3% expansion estimated on April 29. The quarterly growth rate has eased notably from 2.2% in the fourth quarter of 2021.

Year-on-year, economic growth accelerated to 6.3% from 5.5% in the fourth quarter. Nonetheless, the first quarter rate was revised down slightly from 6.4%.

The expenditure-side breakdown showed that household spending decreased 2.0% on quarter, while government spending edged up 0.1%.

Gross capital formation (investments) advanced 2.3%, slower than the 3.6% rise in the prior quarter.

Lowered growth forecast

Exports gained 1.1%, while imports dropped 0.8%.

Earlier this month, the Bank of Spain downgraded its growth outlook for this year to 4.1% from 4.5% and the forecast for 2023 was lowered to 2.8% from 2.9%.

Spain GDP expands less than estimated in Q1