Spain’s economy grew 0.6% in Q4 last year compared to the previous three months, surpassing analysts’ forecasts of growth of 0.2%.

This is according to preliminary data from the National Statistics Institute (INE) published on Tuesday.

In 2023, the country’s economy registered 2.5% growth and was forecast to be the eurozone’s fastest-growing major economy, INE added.

According to Spain’s economy minister, Carlos Cuerpo, the trend was forecast to continue into this year.

The reading for the fourth quarter “provides a good starting point to meet our target of 2% growth in 2024,” the economy minister stated.

Q4 growth was an increase from the revised 0.4% growth figure between July and September, Reuters news agency reports.

Furthermore, on an annual basis, Spain’s Q4 economic output registered 2% growth, exceeding the average estimate of 1.5% in the Reuters survey.

After suffering a deep contraction during the pandemic, Spain has been a recent outperformer amongst other large eurozone countries, according to a Bloomberg report.

Indeed, Spain’s government is planning to progressively phase out aid packages implemented following Russia’s war in Ukraine, which led to the surge in energy costs. However, it has rolled over the majority of these packages into this year as it continues to bolster the economy.

In addition, inflation in Spain unexpectedly rose to 3.5% in January compared to a year ago, surpassing the 3% forecast amongst a number of economists surveyed by Bloomberg.

This is the first beginning of the year price data from a major eurozone nation and could perhaps quash hopes December’s increase was a one-off.