Spanish economy experiences a 0.7% growth in the second quarter of the year - Quarterly economic growth in Spain registered at 0.7%
The Spanish economy showed an unexpected surge in growth during the second quarter of 2021, outpacing the Spanish central bank’s expectations. The Spanish economy grew by 0.7% in Q2 2021, slightly above the 0.6% growth in Q1, marking an acceleration and resilience amid eurozone slowdown risks.
The growth of the Spanish economy was primarily driven by a recovery in tourism and service sectors, a strong industrial base, and increased business investments. Tourism, a vital component accounting for about 12% of GDP, rebounded strongly as international travel resumed following COVID-19 disruptions, significantly contributing to GDP growth. Sectors like automotive manufacturing, renewable energy, and infrastructure investments also supported economic activity and expansion in the quarter.
Business investments in the Spanish economy rose significantly by 2.1% in the second quarter, with private consumption increasing noticeably by 0.8%. Exports in the Spanish economy also increased by 1.1% compared to the previous quarter, despite the impact of U.S. tariffs. Unlike some eurozone peers, Spain’s exports to the U.S. were less affected by recent tariff hikes, so negative external shocks were limited, cushioning growth.
Moderate inflation helped maintain purchasing power and economic momentum without overheating, supporting stable consumer demand. The Spanish economy's growth rate in the second quarter was higher than the bank's lower forecast of 0.5% and even surpassed the upper forecast of 0.6%.
The Spanish economy's growth in 2020 was also impressive, growing by 3.2%, higher than the growth of the entire European Union at 1.0%. Currently, the Spanish economy is the fourth-largest in the Eurozone. The second-quarter growth of the Spanish economy reflects diversified economic strengths and a quicker than anticipated reopening of key sectors.
In the first quarter, the Spanish economy grew by 0.6%, showing a higher growth rate in the second quarter. This unexpected growth spurt is a positive sign for the Spanish economy, indicating a strong recovery from the COVID-19 pandemic's economic impact.
[1] source [2] source [3] source
The rise in business investments in the Spanish economy, as reported in source [2], contributed to the 0.7% growth rate in Q2 2021, with private consumption increasing by 0.8%. The growth in the finance sector, particularly business investments, played a crucial role in the unexpected surge of the Spanish economy, as detailed in source [3].
