The Spanish economy grew by 0.8% in the second quarter, more than expected, on the back of higher exports and strong household spending, official data showed today.
The growth rate is one of the highest in the euro zone where it is the fourth biggest economy and contrasts with a 0.1% contraction logged by Germany in the second quarter.
The Bank of Spain had forecast economic growth of 0.6% for the three months from April to June and the preliminary INE national statistics institute figures announced today matched the revised 0.8% growth seen in the first three months of 2024.
Spanish growth was driven by a 1.2% rise in exports and higher business investment, which rose by 0.9% after expanding 2.6% in the previous three months.
Higher household spending also helped, rising 0.3%, down slightly from a 0.4% expansion in the previous quarter.
Economy Minister Carlos Cuerpo said the rise in exports "reflects the dynamism and competitiveness of our companies", adding that Spain's overall economic growth "continues to be balanced with a very positive contribution from our foreign sector".
The Spanish government this month increased its growth forecast for the economy this year to 2.4% from 2%.
In a separate statement, INE said Spanish inflation had slowed in July due mainly to lower prices for electricity and food.
Consumer prices rose 2.8% on an annual basis, down from 3.4% in June, according to preliminary INE figures.
The Bank of Spain predicts inflation will ease to 2.7% this year from 3.4% in 2023, then fall to 1% in 2025.
