SPAIN’S gross domestic product grew by 5.5% in 2022 despite the global economic crisis which has caused rocketing prices.
Figures released on Friday by the National Statistics Institute(INE) showed growth to be up 0.2% in the final quarter of last year compared to the previous three months- a better than expected number.
The economy in the fourth quarter expanded 2.7% above the same period a year earlier, the INE said.
Spain’s economy recorded a seventh consecutive quarterly expansion and avoided going into recession into the autumn.
The first half of 2022 was far stronger for economic activity as the country removed all pandemic restrictions, boosting the tourism, leisure, and hospitality sectors.
The rate of inflation has slowed by nearly half to 5.5% since July as energy costs continue to decline.
International Monetary Fund estimates suggest that inflation will continue to keep growth subdued, with the economy likely to expand by only 1.1% this year.
Economists suggest that after a shaky start to 2023, there will be an upturn from around March.
Prime Minister Pedro Sanchez has spent billions of euros to counter inflation and help families and businesses with a general election taking place this year.
Spain- after Italy- is also the largest beneficiary of grants from the EU Recovery and Resilience fund.
- Spain’s inflation rate was 5.7% in December
- Gap between wage rises and inflation hit nearly 6% in Spain in 2022
- Unemployment in Spain fell by nearly 80,000 people in 2022 with 278,900 jobs created