Spanish economy grows 1.1% in Q2, beating market expectations

By Aysu Bicer

ANKARA (AA) - Spain’s gross domestic product grew 1.1% in the second quarter of the year, well above market expectations of 0.4%, preliminary estimates showed on Friday.

The figure is up from 0.2% in the previous three months.

Household consumption bounced back (3.2% vs -2% in Q1) while fixed investment slowed (2.8% vs 3.4%) and government expenditures shrank (-0.5% vs 0.1%), Spain's statistics authority INE said.

Net foreign demand contributed negatively to growth as exports rose 1.6% (versus 1.1% in Q1) while imports rose at a faster 4.6% (versus -0.8 percent in Q1).