Final data published by the National Statistics Institute (INE) showed that the economy expanded by 0.8% in the 4th quarter after similar growth in the 3rd quarter. Economists also expected GDP growth of 0.8%. Meanwhile, in annual terms, GDP growth slowed to 3.4% from 3.5% in the 3rd quarter (the strongest growth since the 1st quarter of 2023). Consensus estimates suggested economic growth of 3.5%. For the full year 2024, Spain’s economy expanded by 3.2%, outperforming other Eurozone peers.
Domestic demand contributed 1.2%, while external demand subtracted 0.4%. Household consumption rose by 1.0%, and government spending increased 2.5%, while gross capital formation increased by 2.9%. Exports grew 0.1% after increasing by 0.4% in the 3rd quarter, while import growth accelerated to 1.4% from 0.9%. All major industries showed positive value-added growth except primary industries (-0/7%). Industrial activity grew 0.3%, with manufacturing accelerating to 0.5%. Services growth stabilized at 1.0%, and construction increased by 2.7%.
According to the latest forecasts of the Spanish government, Spain's GDP increased by 2.6% this year, and despite global geopolitical risks, Spain would lead the euro zone's largest economies this year.