The latest figures published by the National Statistics Institute (INE) show Spain’s gross domestic product edged up 0.6% in the first three months of the year, an upward revision from April’s estimate of 0.5% growth.
The National Statistics Institute said the upgrade was a result of better-than-forecast domestic consumption and a robust tourism recovery.
“It confirms that we have already returned to pre-pandemic GDP,” according to a statement by the country’s Economy Ministry.
In addition, growth data for the fourth quarter of last year was also marginally revised upwards, Reuters news agency reports.
Spain’s GDP in the first quarter of 2023 rose 4.2% compared to the same three months last year, the National Statistics Institute added, an increase from the prior estimate of 3.8%.
One of the principal driving forces of the economy continued to be exports, the INE went on to add, as they increased at a rapid pace of more than 10% for the eighth straight quarter.
Furthermore, although Spain’s domestic demand has shown indications of weakening in the most recent quarters – due to households being under pressure from inflation and interest rate hikes - the Statistics Institute has increased its initial figure.
Additionally, the country’s services sector, which makes up more than 70% of the GDP in Spain, fared better than predicted in Q1, with restaurant and retail growth rising 10% compared to the same quarter in 2022.
The Bank of Spain forecasts the country’s economy rose 0.6% between April and June and will register a growth of 2.3% for the year as a whole, a faster pace than the 1.6% forecast three months ago, the Reuters report adds.
However, the government’s official outlook for 2023 full-year growth remains at 2.1%.
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