Madrid--Spain's economic growth accelerated in the first quarter, provisional official data showed Thursday, delivering a possible boost to the government in an election year even though unemployment remains high.
The economy expanded by a faster-than-expected 0.9 percent in the January-March period, up from 0.7 percent in the previous quarter, provisional figures from the National Statistics Institute showed.
It was the seventh consecutive quarter of economic growth and the biggest expansion since the fourth quarter of 2007, before Spain's slump into recession began.
On an annual basis, the eurozone's fourth-largest, grew by 2.6 per cent in the first quarter, up from 2.0 per cent in the previous three month period.
Spain expanded by 1.4 percent in 2014 -- its first full-year of growth since a property bubble burst in 2008, throwing millions of people out of work -- due to increased consumer spending and business investment.
Retail sales rose for the eighth month in a row in March after mostly falling over a three-year period, the National Statistic Office said Wednesday.
Like many of its eurozone partners, the country has also benefited from sliding oil prices as well as a weaker euro which has helped boost exports.
"The Spanish recovery is now moving onto a higher plane, elevated by a supportive external environment, namely lower crude oil prices and the recent slide in the euro," said Raj Badiani, an economist at IHS Global Insight.
Spain's ruling conservative Popular Party has made the improving economy the centrepiece of its campaign strategy for municipal and regional elections on May 24 and a year-end general election.
Prime Minister Mariano Rajoy on Monday said the government expects the country's economy to expand by 2.9 percent this year and by a "similar" figure in 2016.
The government had previously expected growth to reach 2.4 percent in 2015.
