Despite significant coronavirus restrictions in place, Spain’s economy expanded more-than-expected in the second quarter on strong rebound in household spending, flash estimate from the statistical office INE showed on Friday.
Gross domestic product grew 2.8 percent sequentially after contracting 0.4 percent a quarter ago. This was the first expansion in three quarters and faster than the expected growth of 2.2 percent.
The expenditure-side breakdown showed that household spending advanced 6.6 percent and government consumption grew 0.8 percent. On the other hand, gross fixed capital formation dropped 1.5 percent.
Exports of goods and services gained 0.4 percent and imports were up 2.9 percent in the second quarter.
On a yearly basis, GDP rebounded 19.8 percent, reversing a 4.2 percent drop in the prior period. Economists had forecast an annual growth of 19 percent.
In a separate communiqu?, the INE said retail sales growth eased sharply in June.Retail sales grew only 1.4 percent year-on-year in June, much slower than the 19.7 percent expansion logged in May.
On an unadjusted basis, sales were up 1.8 percent.
Month-on-month, retail sales gained 0.2 percent after staying flat in May.