(Bloomberg) — Spain grew more than anticipated in the final quarter of last year as inflation cooled, indicating the euro zone’s fourth-largest economy is on track to avoid a recession.
(Bloomberg) — Spain grew more than anticipated in the final quarter of last year as inflation cooled, indicating the euro zone’s fourth-largest economy is on track to avoid a recession.
Output rose 0.2%, according to data from the INE statistics agency published on Friday. That matches the pace in the previous quarter and exceeds the 0.1% median forecast of economists surveyed by Bloomberg. It puts 2022 growth at 5.5%, maintaining the previous year’s momentum.
Spain’s socialist prime minister, Pedro Sanchez, has pumped billions of euros into the economy in an effort to tame inflation and shield households and businesses in an election year in which he is widely expected to run for office again. Spain is also the largest beneficiary of funds from the EU Recovery and Resilience Facility after Italy.
The rate of price increases has slowed by nearly half to 5.5% since July as energy costs continue to decline. Still, inflation is expected to keep growth subdued, with the Spanish economy likely to expand only 1.1% this year, according to the International Monetary Fund’s latest estimates.
Spain’s data comes ahead of highly anticipated growth numbers for the entire region on Tuesday. Policymakers are hoping that an unexpectedly mild winter will allow the bloc to avoid a serious slump.
–With assistance from Ainhoa Goyeneche and Joel Rinneby.
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