Spanish economy beats growth forecast on strong exports

Tourists aboard a tourist boat go for a tour around the port of Mahon, the largest natural harbour in Europe, on the Balearic island of Menorca, on May 30, 2024. (Photo by JAIME REINA / AFP)

Madrid, Spain — The Spanish economy grew by 0.8 percent in the second quarter, more than expected, due to higher exports and strong household spending, official data showed Tuesday.

The growth rate is one of the highest in the eurozone where it is the fourth biggest economy.

The Bank of Spain had forecast economic growth of 0.6 percent for the April-June period and the preliminary INE national statistics institute figures announced Tuesday matched the revised 0.8 percent growth seen in the first three months of 2024.

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Growth was driven by a 1.2 percent rise in exports and higher business investment, which rose by 0.9 percent after expanding 2.6 percent in the previous three months.

Higher household spending also helped, rising 0.3 percent, down slightly from a 0.4 percent expansion in the previous quarter.

The Spanish government this month increased its growth forecast for the economy this year to 2.4 percent from 2.0 percent.