2022.04.2913:51:00UTC+00Spanish Growth Slows More Than Expected

Spain's economic growth slowed more than expected in the first quarter as consumption shrank and investment growth slowed amid high inflation and the uncertainty triggered by the war in Ukraine.

Gross domestic product grew 0.3 percent from the fourth quarter, when the economy expanded 2.2 percent, preliminary data from the statistical office INE showed Friday. Economists had forecast a 0.5 percent increase.

The pace of growth slowed for a second quarter in a row.

Household consumption decreased 3.7 percent following a 1.5 percent increase in the previous quarter. Gross fixed capital formation growth slowed to 2.4 percent from 3.6 percent.

Exports grew at a slower pace of 3.4 percent, while imports decreased 0.5 percent.

On a year-on-year basis, GDP rose 6.4 percent following a 5.5 increase in the previous three months. Economists had forecast 6.5 percent growth.

Separate data from the INE showed that retail sales dropped 4.2 percent in March following a 0.9 percent increase in February. Compared to the previous month, retail sales dropped 3.8 percent.

Import price inflation accelerated to 30.7 percent in March from 25.0 percent in February. The rate was the highest since January 2006.