Latest news with #INE
Yahoo
5 hours ago
- Business
- Yahoo
Spain's economy grows 0.7% as it continues to outshine eurozone peers
The Spanish economy is continuing on a strong growth trajectory despite global trade uncertainties, with national output (GDP) growing by 0.7% quarter-on-quarter from April to June. GDP jumped by 2.8% year-on-year, according to data published on Tuesday by the National Statistics Institute (INE). In the previous quarter, yearly growth was also recorded at 2.8% and quarterly growth came in at 0.6%, allowing Spain to emerge as one of the fastest growing economies in the eurozone. While other major European economies are grappling with structural crises and the impact of geopolitical tensions, the Spanish economy is progressing solidly. Domestic demand has been key, contributing 0.9 percentage points to quarterly growth. Household spending continued to be the main driver, supported by an expanding labour market. In fact, the second quarter marked a new milestone, with more than 22 million people in employment, according to the Labour Force Survey (EPA). At the same time, the unemployment rate fell to 10.29%, its lowest level since 2008, although still well above the eurozone average. 'The Spanish economy was initially projected to follow a robust growth trajectory through 2025, with a slight moderation expected in 2026. Most forecasts anticipated annual GDP growth in the range of 2.2% to 2.6% for 2025,' said professor of macroeconomics Evi Pappa, at the Universidad Carlos III in Madrid. 'However, data from the first and second quarters of 2025 indicate that Spain is surpassing these expectations,' she added. Miguel Cardoso-Lecourtois, chief economist at BBVA Research, told Euronews that the 'engines of growth' in Spain are nonetheless changing as foreign tourism and government consumption slow. The latter is affected by political fragmentation, preventing the approval of a new budget, while domestic policies to tackle overtourism are slowing spending by non-Spanish residents. 'Growth is now more tilted towards domestic consumption and investment,' said Cardoso-Lecourtois. 'This is happening as inflation is coming down (energy prices), employment growth continues to be strong, wages continue to increase and interest rates go down. … Although government consumption is weak, public investment is relatively strong thanks to emergency funds aimed at helping flood victims in Valencia and NGEU funds.' It also appears that the Spanish economy will escape significant direct effects from the recent trade agreement between the United States and the European Union, which includes a new 15% tariff on many EU exports to the US. 'Given Spain's small share of trade with the US and strong domestic economy, it looks well placed to continue to outperform the euro area over the coming quarters,' said Ángel Talavera, head of Europe economics at Oxford Economics. Peter Vanden Houte, chief economist with ING, told Euronews that Tuesday's GDP figures mean Spain's 2.6% annual growth target is 'certainly achievable'. He added that interest rate cuts are also driving the construction industry in Spain, supporting growth. Sign in to access your portfolio
Reuters
8 hours ago
- Business
- Reuters
Portugal's economy bounces back with 0.6% quarterly growth
LISBON, July 30 (Reuters) - Portugal's economy bounced back to expand 0.6% in the second quarter from the previous three-month period when it shrank a revised 0.4%, the National Statistics Institute (INE) said on Wednesday, citing strong private consumption and exports growth. Gross domestic product also grew 1.9% year-on-year, in an acceleration from a 1.7% growth in January-March, it said. The Bank of Portugal slashed its full-year growth forecast in June to 1.6% from 2.3% citing global trade tensions, although the country is still on course to outgrow most of the top euro zone economies. Last year, the economy grew 1.9%. The government has so far stuck to its estimate of 2.1% growth this year. The INE said the contribution of net external demand to the quarter-on-quarter change in GDP was less negative than in the previous quarter, with exports of goods and services registering growth after dropping in the previous quarter. "Similarly, the positive contribution of domestic demand increased, with private consumption growing," it added. By contrast, the German economy contracted by 0.1% in the second quarter, data showed on Wednesday, as demand from the United States slowed following months of strong purchases in anticipation of U.S. tariffs. French GDP grew 0.3%, beating forecasts, while Italy's GDP unexpectedly contracted 0.1%. Portugal's neighbour Spain, where growth accelerated to 0.7% last quarter, remains one of the main outliers in a sluggish euro zone setting.
Reuters
10 hours ago
- Business
- Reuters
Spain's 12-month EU-harmonised inflation rises to 2.7% in July
July 30 (Reuters) - Spain's European Union-harmonised 12-month inflation rate rose to 2.7% in July, from 2.3% in the period through June, preliminary data from the National Statistics Institute (INE) showed on Wednesday. The 12-month EU-harmonised inflation was in line with expectations of analysts polled by Reuters. Core inflation, which strips out volatile fresh food and energy prices, was 2.3% year-on-year in July, above 2.2% in June, the INE data showed. Spain's 12-month national inflation also rose to 2.7%, from 2.3% in June. Analysts polled by Reuters expected a 2.6% rate.
Yahoo
a day ago
- Business
- Yahoo
Spain's economy grows 0.7% as it continues to outshine eurozone peers
The Spanish economy is continuing on a strong growth trajectory despite global trade uncertainties, with national output (GDP) growing by 0.7% quarter-on-quarter from April to June. GDP jumped by 2.8% year-on-year, according to data published on Tuesday by the National Statistics Institute (INE). In the previous quarter, yearly growth was also recorded at 2.8% and quarterly growth came in at 0.6%, allowing Spain to emerge as one of the fastest growing economies in the eurozone. While other major European economies are grappling with structural crises and the impact of geopolitical tensions, the Spanish economy is progressing solidly. Domestic demand has been key, contributing 0.9 percentage points to quarterly growth. Household spending continued to be the main driver, supported by an expanding labour market. In fact, the second quarter marked a new milestone, with more than 22 million people in employment, according to the Labour Force Survey (EPA). At the same time, the unemployment rate fell to 10.29%, its lowest level since 2008, although still well above the eurozone average. 'The Spanish economy was initially projected to follow a robust growth trajectory through 2025, with a slight moderation expected in 2026. Most forecasts anticipated annual GDP growth in the range of 2.2% to 2.6% for 2025,' said professor of macroeconomics Evi Pappa, at the Universidad Carlos III in Madrid. 'However, data from the first and second quarters of 2025 indicate that Spain is surpassing these expectations,' she added. Miguel Cardoso-Lecourtois, chief economist at BBVA Research, told Euronews that the 'engines of growth' in Spain are nonetheless changing as foreign tourism and government consumption slow. The latter is affected by political fragmentation, preventing the approval of a new budget, while domestic policies to tackle overtourism are slowing spending by non-Spanish residents. 'Growth is now more tilted towards domestic consumption and investment,' said Cardoso-Lecourtois. 'This is happening as inflation is coming down (energy prices), employment growth continues to be strong, wages continue to increase and interest rates go down. … Although government consumption is weak, public investment is relatively strong thanks to emergency funds aimed at helping flood victims in Valencia and NGEU funds.' It also appears that the Spanish economy will escape significant direct effects from the recent trade agreement between the United States and the European Union, which includes a new 15% tariff on many EU exports to the US. 'Given Spain's small share of trade with the US and strong domestic economy, it looks well placed to continue to outperform the euro area over the coming quarters,' said Ángel Talavera, head of Europe economics at Oxford Economics. Peter Vanden Houte, chief economist with ING, told Euronews that Tuesday's GDP figures mean Spain's 2.6% annual growth target is 'certainly achievable'. He added that interest rate cuts are also driving the construction industry in Spain, supporting growth. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
a day ago
- Business
- Euronews
Spain's economy grows 0.7% as it continues to outshine eurozone peers
The Spanish economy is continuing on a strong growth trajectory despite global trade uncertainties, with national output (GDP) growing by 0.7% quarter-on-quarter from April to June. GDP jumped by 2.8% year-on-year, according to data published on Tuesday by the National Statistics Institute (INE). In the previous quarter, yearly growth was also recorded at 2.8% and quarterly growth came in at 0.6%, allowing Spain to emerge as one of the fastest growing economies in the eurozone. While other major European economies are grappling with structural crises and the impact of geopolitical tensions, the Spanish economy is progressing solidly. Domestic demand has been key, contributing 0.9 percentage points to quarterly growth. Household spending continued to be the main driver, supported by an expanding labour market. In fact, the second quarter marked a new milestone, with more than 22 million people in employment, according to the Labour Force Survey (EPA). At the same time, the unemployment rate fell to 10.29%, its lowest level since 2008, although still well above the eurozone average. 'The Spanish economy was initially projected to follow a robust growth trajectory through 2025, with a slight moderation expected in 2026. Most forecasts anticipated annual GDP growth in the range of 2.2% to 2.6% for 2025,' said professor of macroeconomics Evi Pappa, at the Universidad Carlos III in Madrid. 'However, data from the first and second quarters of 2025 indicate that Spain is surpassing these expectations,' she added. Miguel Cardoso-Lecourtois, chief economist at BBVA Research, told Euronews that the 'engines of growth' in Spain are nonetheless changing as foreign tourism and government consumption slow. The latter is affected by political fragmentation, preventing the approval of a new budget, while domestic policies to tackle overtourism are slowing spending by non-Spanish residents. 'Growth is now more tilted towards domestic consumption and investment,' said Cardoso-Lecourtois. 'This is happening as inflation is coming down (energy prices), employment growth continues to be strong, wages continue to increase and interest rates go down. … Although government consumption is weak, public investment is relatively strong thanks to emergency funds aimed at helping flood victims in Valencia and NGEU funds.' It also appears that the Spanish economy will escape significant direct effects from the recent trade agreement between the United States and the European Union, which includes a new 15% tariff on many EU exports to the US. 'Given Spain's small share of trade with the US and strong domestic economy, it looks well placed to continue to outperform the euro area over the coming quarters,' said Ángel Talavera, head of Europe economics at Oxford Economics. Peter Vanden Houte, chief economist with ING, told Euronews that Tuesday's GDP figures mean Spain's 2.6% annual growth target is 'certainly achievable'. He added that interest rate cuts are also driving the construction industry in Spain, supporting growth.
