Domestic demand buoys Spanish economy

23rd February 2005, Comments 0 comments

23 February 2005, MADRID-Spanish economic growth rose 2.7 percent in 2004, one of the highest rates in the 12-nation eurozone, analysts said.

23 February 2005

MADRID-Spanish economic growth rose 2.7 percent in 2004, one of the highest rates in the 12-nation eurozone, analysts said.

Thanks to continued domestic demand, the economic picture looks healthy, according to figures released by the national statistics institute (INE).

In comparison, in 2003 the economy expanded by 2.5 percent.

INE said in a statement that domestic demand had contributed 4.6 percentage points to gross domestic product (GDP) growth last year, equivalent to the level of one year earlier.

Weaker external demand trimmed 1.9 percentage points off the total, a slight improvement nonetheless from the negative 2.0 percentage points in 2003.

In the fourth quarter of 2004, GDP expanded by 0.8 percent from the previous three months, following growth of 0.6 percent in that quarter.

Spanish Economy Minister Pedro Solbes estimated the economy could expand by three percent this year, although the official forecast is for growth of 2.9 percent.

[Copyright EFE with Expatica]

Subject: Spanish news

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