Spain economy grows despite political impasse

The political stalemate that has left Spain without a government since unconclusive December elections hasn't damaged the economy as official data released Friday showed the economy expanded at a healthy pace in the first quarter.

Gross domestic product (GDP) expanded by 0.8 percent between January and March from the previous three months, matching the growth rate in the final two quarters of 2015, national statistics institute INE said in a preliminary estimate.

Spain's acting government predicts the economy will expand by 2.7 percent this year, then slow to 2.4 percent in 2017, according to new economic forecasts approved on Friday at a weekly cabinet meeting.

It sees the Spanish economy expanding by 2.5 percent in both 2018 and 2019.