Spain’s economy grew at the fastest pace in two decades last year, but moved well below government expectations and slowed in the fourth quarter as public and private sector spending slipped amid rising inflation, according to Reuters.
Gross Domestic Product rose 5% from a historic 10.8% drop last year, according to preliminary data from the National Statistics Institute (INE) released on Friday, which said it had grown the fastest since 2000. , but the economy lost its 6.5% government target.
In September, the INE made an unprecedented sharp cut in first- and second-quarter growth readings that rejected all forecasts and caused a wave of downward revisions, but the government remained on its upward forecast.
Despite lower spending, the 8.5% increase in investment led to a 2% quarterly growth in October-December, slowing from 2.6% in the previous three months, but slightly exceeding the forecast of 1.4% by participating analysts. in a Reuters poll.
Agriculture was the fastest growing sector in the quarter, growing by about 9% as the economically vital autumn grape and olive harvest began.
On an annual basis, the economy grew by about 5.2% in the fourth quarter of 2020, led by a 19.4% jump in the hospitality sector, which has benefited from the widespread dissemination of coronavirus vaccines and the lifting of restrictions. in socialization, despite the spread of the Omicron variant in the last weeks of the year.
Source From: Capital
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