Spain grew by 2.7% in 2023, two tenths more than initially recorded. The National Institute of Statistics (INE) publishes a deep upward revision of last year’s GDP growth, in which it now appreciates a greater contribution from external demand. Concretely, they confirm that the increase in the volume of exports amounted to 2.8%, against 2.3% estimated in March. We also observe a better behavior of national demandThe year-on-year change in consumer spending is revised upwards by four-tenths, to 2.7%. However, some imbalances are also worsening, such as the economy’s dependence on government spending, which the organization now estimates at 5.2%, compared to 3.8% previously.
“This greater growth has allowed all components of demand to return to pre-pandemic levels,” the Ministry of Economy said in a statement, in which it insisted that Spain continues to lead economic growth among the main countries in the eurozone.
The document also provides other news. The implicit GDP deflator increases from 5.9%, the previous estimate, to 6.2%. Spain’s gross national income also increases. It finally stands at 1,491,103 million euros in 2023, 2.6% more than the previous estimate. Regarding employment, the INE maintains the rate of variation in terms of full-time equivalent jobs at 3.2%, but increases the increase in hours worked to 2%, a tenth more than expected. Employee compensation growth was 9.1%, compared to 8.8% previously calculatedwhile the gross operating surplus increased by 9.2%, eight tenths more than previously expected. Overall, the value of GDP at current prices for 2023 remains at 1,498,234 million euros, 36,435 million more than what was recorded a few months ago.
The update of the statistics also impacts the figures for 2022 and 2021, when the Spanish economy increased to 6.2% and 6.7%four and three tenths more than expected, respectively. In this case, the components of national demand, consumption and investment in fixed capital are also revised upwards. The balance of foreign trade in goods and services, however, has been revised downwards. At current prices, the balance leaves the GDP for 2022 at 1,373,629 million, and that of 2021 at 32,480 million euros.
The statistics also justify the improvement of the figures in an extraordinary update of the measurement system that European policy requires of the Member States of the European Union. It should be remembered that the last revision of the estimation method was carried out in 2019. The changes applied to the process affect all series (1995-2023) in order to be homogeneous and comparable each year. However, while the results for the years 1995 to 2020 only include the impact of this extraordinary regulated revision, those for the years 2021, 2022 and 2023 also incorporate the usual updates of the ordinary annual revision policy of the INE’s accounting operations.
