The Spanish economy is on the track to recovery after Gross Domestic Product grew by 0.8% in the first quarter (Q1) of the year, according to the Central Bank.
Spain and France experienced the fastest economic growth in Q1. Both French and Spanish GDP grew 0.1% more than economists predicted in a Bloomberg survey; French GDP rose to 0.5% whilst Spanish GDP beat the 0.7% growth forecast.
Growth in the euro-region economy also beat economic faorecasts by rising by 0.4%, according to analysis
Frederik Ducrozet, an economist at Banque Pictet & Cie in Geneva, says: “Euro-area GDP looks on course to surprise on the upside,” reported Bloomberg.
“For the ECB, the message on this will be that everything they’ve put in place is helping the recovery and what is needed is more time for the impact to be seen,” he said.
The Bank of Spain has increased its forecasts for GDP expansion over the next three years: in 2017 it is now set at 2.8%, 2018 2.3% and 2019 2.1%, whereas previous forecasts were set at 2.5%, 2.1% and 2%, respectively.
Tags: Bank of Spain, Spanish Economic Recovery, Spanish GDP