Spain's Economic Growth Surpasses Expectations in 2024
The Spanish economy grew by 3.2% in 2024, exceeding previous forecasts and marking a continuation of its upward trajectory for four consecutive years. This growth is five-tenths of a percentage point higher than the rate recorded in 2023, despite maintaining a growth rate of 0.8% in the final quarter of the year, consistent with both the second and third quarters. Preliminary data from the National Statistics Institute (INE) released this Wednesday indicates a vibrant economic landscape.
The government had initially predicted a GDP growth rate of 2.7% for 2024, but Economy Minister Carlos Cuerpo hinted earlier that this estimate was conservative, foreseeing growth above 3%. The contribution of domestic demand to the overall economic growth was significant, accounting for 2.8 percentage points—an increase of 1.1 points compared to the previous year. In contrast, external demand contributed a mere four-tenths of a percentage point, reflecting a reduction of six-tenths from 2023.
The nominal value of GDP for 2024 stood at 1,593,136 million euros, representing an increase of 6.3% compared to 2023. Spain continues to be a leader in economic growth within the eurozone, with its GDP growth being four times higher than the average for the region, according to the Ministry of Economy. The ministry emphasized that these figures reflect a robust and balanced growth trajectory supported by both national and international organizations.
Throughout the year, the year-on-year GDP growth rate peaked at 3.5%. In the final quarter of last year, this rate held steady at 3.5%, driven exclusively by domestic demand, as contributions from external demand nearly stagnated. When examining quarterly growth from October to December 2024, the GDP also grew by 0.8%, with domestic demand contributing 1.2 percentage points, while the external sector detracted four-tenths.
Household consumption saw a rise of 1% in the fourth quarter, though this was a slight decline of two-tenths from earlier estimates. Additionally, public spending's growth moderated, increasing by only 0.4%, a downturn of 2.1 points. However, one standout area was investment, which surged by 3.4% between October and December, a stark contrast to the 1.4% decline noted in the previous quarter. This dynamic showcases a shift toward greater investment activity, which may bode well for future economic performance.
In summary, Spain's economic performance in 2024 showcases resilience and growth, bolstered by strong domestic demand and substantial investment recovery.
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