Final data published by the National Statistics Institute (INE) showed that the economy expanded by 0.8% in the 1st quarter, exceeding economists' forecasts (+0.7%), and accelerating compared to the 4th quarter (+0.7%). It marked the strongest growth rate since the 2nd quarter of 2022. Meanwhile, in annual terms, GDP grew by 2.5% after an increase of 2.1% in the 4th quarter. Consensus estimates suggested economic growth of 2.4%. The contribution of domestic demand to those numbers stood at 2.3% and of the external one at 0.2%. Compared to the previous trimester, the former figure came in at 0.3% and the latter at 0.5%. Exports of goods and services fell by 0.2% per annum and grew by 3.3% in quarterly terms. Meanwhile, imports of goods and services decreased by 0.7% per annum and increased by 2.2% compared to the 4th quarter.
Last month, the European Commission said that economic activity in Spain is expected to grow at 2.1% in 2024 and 1.9% in 2025, driven by domestic demand and sustained by continued labor market resilience. Meanwhile, the International Monetary Fund predicts that GDP growth will reach 2.4% in 2024 and 2.1% in 2025, driven primarily by stronger domestic demand growth.