In 2023, Spain and Portugal surpassed the economic performance of major European nations, preventing the eurozone from entering a recession, according to recent statistics.
Spain’s economy grew by 2.5%, as indicated by initial data from its statistics institute, boosted by a significant recovery in tourism after the pandemic’s disruptions.
Portugal, benefiting from a similar tourism revival, saw its economy expand by 2.3%, especially with a surge in growth towards the year’s end. This growth outshone France’s 0.9% and Italy’s 0.7% expansion, while Germany experienced a 0.3% decline.
Analysts noted that the positive results from Spain and Portugal, along with a slight uptick in Italy, helped the eurozone avoid a recession.
Spain’s Prime Minister Pedro Sanchez hailed the growth as surpassing expectations, emphasizing on social media that it showcases the feasibility of fostering economic growth, job creation, and support for citizens and businesses simultaneously.
This performance exceeded both the Spanish government’s and the OECD‘s growth predictions.
“The Spanish economy has shown itself to be much more resilient than in the past,” Pedro Aznar, an economics professor at the Esade Business School told AFP.
Portugal is also facing headwinds with the country facing an early general election on March 10 which opinion polls suggest will result in a fractured parliament.
“The formation of a stable government will be difficult following the March general election,” said economist Pedro Braz Teixeira who heads the research department of the business group Forum for Competitiveness.
