2023-06-23 09:22:54
Madrid
Updated Friday, June 23, 2023 – 09:22
Statistics estimate that the economy rebounded by 0.6% in the first quarter, correcting the 0.5% that had advanced
The First Vice President of the Government and Minister of Economic Affairs, Nadia CalvioEFE
The economy grew by 0.6% in the first quarter, which means an upward revision of one tenth with respect to the data advanced by the National Institute of Statistics (INE). The body has confirmed this Friday the new National Accounts figure, which also means that the Government has already recovered the level of Gross Domestic Product (GDP) prior to the pandemic.
“The National Accounts data confirm what the rest of the indicators anticipated: we have already recovered the pre-pandemic GDP level. Growth accelerated during the first quarter of the year and the Spanish economy is the fastest growing in the EU, at a rate of 4.2%, four times more than the average”, said the first vice president, Nadia Calvio. 4.2% to which the also Minister of Economy refers is the interannual growth data, which in this case registers an upward revision of four tenths.
The Government is focusing on Spain’s strong growth, on the fact that GDP is picking up much more than average and that it is leading the way in the EU. And the data proves this, showing that the performance in the first quarter has been much better than expected and that fears of a possible technical recession have long since dissipated. But what the numbers also show is that the Spanish economy accumulated a great delay compared to the rest of Europe.
The very fact that it had to wait so long to return to pre-pandemic GDP is the best example. The Eurozone average reached that milestone already at the end of 2021, while Spain has had to wait more than three years. The economic collapse in 2020 was very pronounced, at the head of all developed economies, and recovering that level has cost a lot.
And beyond the return to 2019, the Spanish GDP has another tough task ahead of it: closing the gap that it accumulates with respect to the Eurozone. This week, the Bank of Spain warned that by the end of 2025 this difference will not have been fully closed. We will have to wait, therefore, at least until 2026. Even though, as the BdE estimates, the Spanish economy will grow above the European average throughout the period 2023-2025.
Suffers consumption of families
Regarding the figures offered this Friday by the INE, it can be seen that the quarterly growth is based on the exports and business investment, who advanced strongly. On the other hand, household consumption contracted a notable 1.3%.
This supposes the second consecutive negative date, after the fall of 1.6% registered in the last quarter of last year, which shows that the purchasing power and spending of households is being severely limited. That families are suffering from the increase in prices, and this contrasts with the rebound that GDP is registering.
According to the criteria of The Trust Project
Know more
#INE #revises #growth #quarter #Government #considers #GDP #finally #recovered #pandemic