Spanish GDP grew by faster than expected 0.5% in second quarter

Tourists walk along a shopping street in central Malaga, Spain, April 28, 2022. REUTERS/Jon Nazca/File photo

MADRID -Spain’s gross domestic product grew 0.5 percent in the second quarter, its National Statistics Institute (INE) said on Friday, revising its previous estimate up from 0.4 percent growth and confirming a faster and stronger rebound from the COVID-19 pandemic.

The Spanish Economy Ministry said in a statement that INE’s data showed Spain’s economy picked up speed during the second half of 2021, kept momentum in early 2022 and surpassed pre-pandemic levels last year, like other large EU economies.

Previous data had shown that Spain’s economy had only recovered its pre-pandemic size in 2023.

Spanish GDP in the April to June period grew 2.2 percent from the same period a year ago, INE said, a faster pace than the 1.8 percent growth it had originally estimated.

INE also revised GDP growth for the first quarter of 2023 to a quarter-on quarter growth of 0.6 percent up from 0.5 percent . Spain’s year-on-year growth in the first quarter remained unchanged at 4.2 percent.

READ: French, Spanish economies grew in Q2, Germany stagnated

On Monday, INE revised Spain’s 2022 economic growth rate to 5.8 percent from 5.5 percent after computing final data, and made an upward review of 2021 data to growth of 6.4 percent from a previous 5.5 percent .

Employment, one of the most important drivers of economic activity, has also been revised upwards.

The Bank of Spain warned this week that it expects a gradual slowdown in the economy, with growth of 0.3 percent in the third quarter of 2023, and annual growth of 2.3 percent , still faster than other euro zone countries.