Spain posts strong growth for 2022 despite inflation

Spain posts strong growth for 2022 despite inflation

Pedro Sanchez said Spain's economy was defying the 'prophets of doom'
Pedro Sanchez said Spain's economy was defying the 'prophets of doom'. Photo: Fabrice Coffrini / AFP/File
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Spain's economy grew faster than expected in 2022 as strong domestic consumption and a surge in investement offset worries over high inflation, officials figures showed Friday.

Despite soaring energy and food prices fuelled by the war in Ukraine, the economy grew by 5.5 percent, similar to the previous year and well above the government's target of 4.4 percent, according to an initial estimate by the National Statistics Institute (INE).

"Despite the prophets of doom, we have strong economic growth, the lowest inflation in Europe and record employment," tweeted Prime Minister Pedro Sanchez, saying the figures showed "the strength and resilience of the Spanish economy".

The INE said the growth figures reflected a strong performance in spring when gross domestic product rose by 2.2 percent between April and June thanks to steady household consumption.

That boost offset a sharp slowing of activity towards the end of the year -- when GDP grew by just 0.2 percent in the third and fourth quarters -- in a context of high consumer prices that affected economies across Europe.

Read also

US growth slows in 2022 as downturn fears loom

In Spain, inflation reached an average of 8.4 percent last year, peaking at 10.8 percent in July, INE figures showed.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

But it has slowed in recent months, falling to 5.7 percent at the end of December, one of the lowest figures in the Eurozone.

Spain "has demonstrated a notable resilience" in a "very difficult" context, Economy Minister Nadia Calvino said earlier this week, noting its growth levels were well above the European average, estimated by Brussels to be 3.3 percent.

"We are starting 2023 on a good footing."

The government believes the dynamic will enable Spain to maintain solid growth this year although its target of 2.1 percent is far lower than the figure for 2022.

Even so, the prediction is far more optimistic than that of institutions like the IMF which sees the economy growing by 1.1 percent.

Read also

US growth expected to slow in fourth quarter as downturn fears loom

Among Western economies, Spain was one of the worst hit by the economic fallout of the pandemic, with its GDP collapsing by 10.8 percent in 2020, largely due to its heavy dependence on tourism.

The IMF believes Spanish growth will only reach pre-pandemic levels in 2024.

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.