The economy grew by nearly 4% in the year to the second quarter of 2003, fuelled by buoyant exports and private consumption, and it seemed likely to keep up that pace.
Consumption has remained buoyant, giving Spain some of the largest current-account and trade deficits in the world.
Consumer demand has been buoyant, with the signs of conspicuous consumption all around, from the gaudy new gated housing estates to the increasing numbers of sleek European sports cars on the roads.
He could use a buoyant growth strategy.
At the same time, consumption and housing have stayed relatively buoyant.
Financial markets provided little reaction to the data, which showed that buoyant domestic demand, especially in transportation, hotels and government consumption, had kept growth on an even keel.
"It seems that growth has come principally from domestic demand, with consumption benefitting from the drop in energy prices and buoyant financial markets boosting confidence," said Vanden Houte.
That will remain one of the most buoyant markets in India, thanks to favourable demographics, changing cultural and consumption patterns, higher purchasing power and the spread of financial services outside the big cities.
"Germany's buoyant labour market continues to underpin wage growth and thus private consumption, in combination with very low inflation," said Christian Schultz, economist at Berenberg.
