The Spanish economy exceeded expectations in the final quarter of last year, driven by both domestic and external demand. According to the national statistics body INE, gross domestic product (GDP) increased by 0.6% between October and December, surpassing the previous quarter’s growth rate of 0.4%. Economists surveyed by The Wall Street Journal had predicted a slower growth rate of 0.2%.
This unexpected expansion solidifies Spain’s position as an outperformer among its eurozone counterparts, such as France and Germany, which experienced limited growth during the latter half of the year.
Over the course of the entire year, Spain’s economy, the fourth-largest in the eurozone, grew by an impressive 2.5%, ranking it among the top performers in the developed world. The remarkable fourth-quarter growth was primarily driven by domestic demand, with the public sector playing a prominent role. Additionally, household spending and investment contributed to the overall growth. While both exports and imports increased during the quarter, exports outpaced imports, resulting in an enhanced net trade surplus.
Spain’s economy continues to demonstrate resilience, defying initial expectations with robust growth. This positive trend is expected to further strengthen the country’s position on the global economic stage.
