Spain GDP expands less than estimated in Q1

Spain's economy expanded less than estimated in the first quarter, final data from the statistical office INE showed on Friday.

Gross domestic product grew 0.2% sequentially, slower than the 0.3% expansion estimated on April 29. The quarterly growth rate has eased notably from 2.2% in the fourth quarter of 2021.

Year-on-year, economic growth accelerated to 6.3% from 5.5% in the fourth quarter. Nonetheless, the first quarter rate was revised down slightly from 6.4%.

The expenditure-side breakdown showed that household spending decreased 2.0% on quarter, while government spending edged up 0.1%.

Gross capital formation (investments) advanced 2.3%, slower than the 3.6% rise in the prior quarter.

Lowered growth forecast

Exports gained 1.1%, while imports dropped 0.8%.

Earlier this month, the Bank of Spain downgraded its growth outlook for this year to 4.1% from 4.5% and the forecast for 2023 was lowered to 2.8% from 2.9%.