Alex Trelinski
SPAIN’S economy grew by 3.2% in 2024- much higher than other eurozone countries- according to preliminary figures published by the National Statistics Institute on Wednesday.
The expansion was 0.5% up on the previous year, while countries like France and Germany have annual growth rates of just 1%.
The main driving forces were record foreign tourist numbers; the hospitality sector regaining trade lost in the midst of the Covid pandemic; and the arrival of immigrants which has covered vacancies and compensated for an ageing population.
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Public spending has continued to increase, especially by the regional governments, bolstered by better public revenues due to lower inflation.
Household spending has been recovering as inflation has eased while wages rose by around 5% on average and exports have risen.
In the fourth quarter of 2024, Spain’s economy grew by 0.8% quarter-on-quarter, driven by household consumption, which soared by 1% quarter-on-quarter, and by investment, which increased by 2.8%- its largest increase in three years.
Economy Minister Carlos Cuerpo said the government would raise its growth forecast for this year from the current 2.4% following the annual figures.
The full-year growth rate for 2024 was faster than the 2.7% projected by the government and even the 3.1% predicted by the Bank of Spain.
“Spain keeps leading the eurozone growth, with a GDP increase four times higher than the region as a whole,” Cuerpo said in a statement.
