According to the report from the National Statistics Institute (INE), in the 4th quarter, the Spanish economy grew by 0.2%, exceeding economists' forecasts (+0.1%). Meanwhile, GDP growth for the 3rd quarter was revised upward to 0.2% from 0.1%. The economy recorded its seventh consecutive quarterly growth and avoided recession in the autumn, despite a slowdown in the global economy and a reduction in private consumption.
GDP growth was driven by the services sector, which expanded by 0.3%, helped by growth in financial services and real estate. Manufacturing output also increased, while construction declined by 0.3%. Household consumption decreased by 1.8%, reflecting the impact of high inflation and energy costs on household finances. Spain's GDP remains 1.1% below its pre-pandemic level, indicating a slower recovery than in the rest of the eurozone.
In annual terms, the growth of the Spanish economy slowed to 2.7% from 4.8% in the 3rd quarter (revised from +4.4%). Consensus estimates suggested an expansion of the economy by 2.2%.
INE also stated that the economy grew by 5.5% for the whole of 2022. In December, government officials had predicted that 2022 economic growth would surpass the original 4.5% forecast and had likely surpassed 5%. Now the government expects the GDP growth will slow down to 2.1% in 2023.