Spain’s growth pace accelerates at the end of the year, exceeding expectations

Written by Joshua Kirby

Spain’s economy grew faster than expected in the final quarter of last year, proving strong domestic and foreign demand.
Gross domestic product (GDP) grew by 0.6% in the October-December period, up from 0.4% in the previous quarter, figures from national statistical agency INE showed on Tuesday. Economists polled by the Wall Street Journal had expected a 0.2% slowdown.

The faster-than-expected expansion confirms that Spain’s economy is easily outpacing its major euro zone peers, while France and Germany have largely stagnated in the second half of the year.
The economy grew 2.5% for the year, ranking fourth in the Eurozone, one of the highest among developed countries. Domestic demand boosted growth in the fourth quarter. This was primarily driven by the public sector, but was also accompanied by growth in household spending and investment. Exports and imports both increased in the quarter, but the former outpaced the latter, resulting in an increase in net trade.
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