Spain’s economy has recovered and is gaining growth
2023.01.27 08:52
Spain’s economy has recovered and is gaining growth
By Tiffany Smith
Budrigannews.com – According to official data released on Friday, Spain avoided a recession in the final quarter despite concerns of a global slowdown as the country’s gross domestic product expanded by 5.5 percent in 2022, which was faster than anticipated.
The National Statistics Institute reported on Friday that Spain’s GDP increased by 2.7% from the same quarter in 2021 and 0.2% from the previous quarter.
Spain achieved its seventh quarter of growth in a row during the final quarter of the year thanks to public spending, which made up for a decrease in private consumption.
Reuters polled analysts and predicted growth of 0.2 percent quarter-over-quarter and 2.2% year-over-year.
The final GDP numbers were higher than both the official annual forecast of 4.5 percent and the 5% that the Prime Minister predicted for the latter half of 2022. Additionally, the statistician raised previous quarters’ revisions.
Although many analysts anticipate a sharper slowdown, Madrid anticipates GDP growth will slow to 2.1% in 2023.
The jobless rate increased in the last three months of 2022 as employers anticipated a slowdown, according to data released on Thursday.
Since the beginning of the previous quarter, European recovery funds have been pouring into Spain’s economy, totaling 31 billion euros, or 33.69 billion dollars.
In the fourth quarter, as the global economy slowed, exports, which were one of the driving forces of the Spanish economy in 2022, came to a screeching halt. Restaurants, hotels, and retail all saw their growth halt.
When the pandemic shut down tourism in Spain in 2020, the economy contracted by 11.3%, and it has not yet fully recovered to pre-Covid levels.
