In the third quarter of 2014, Spanish gross domestic product (GDP) grew 0.5 percent quarter-on-quarter, compared to a euro-zone-wide figure of 0.2 percent.
But despite firm growth figures, the country's inflation data makes for somber reading. In December, the consumer price index (CPI), which tracks the prices of an everyday basket of goods, fell to -1 percent from a year earlier.
It comes after figures last week revealed that the euro zone slipped into deflation in December, boosting expectations that the European Central Bank (ECB) will initiate a full-scale government bond-buying program in the near future.
While falling prices could be good news for consumers to some extent, deflation can be a double-edged sword for national economies.
There are fears of a deflationary spiral setting in – where consumers delay spending in the expectation that prices will fall further, as happened in Japan – and the real value of both money and debt rises, putting pressure on the economy.
Jonathan Loynes, chief European economist at Capital Economics, said that Spain was particularly vulnerable to deflation, and argued that the latest figures could not be blamed solely on the falling price of oil.
"While Spain's economic recovery remains solid, its high unemployment and large degree of spare capacity make it vulnerable to a prolonged bout of deflation," he wrote in the consultancy's forthcoming quarterly report, yet to be published.
"Spain has been one of the euro-zone's stronger performers over recent quarters. And timely survey evidence such as the composite PMI (Purchasing Managers' Index) show few signs of any significant loss of momentum. But this may not be sustainable."
In the report, Loynes, along with Roger Bootle and Martin Essex at Capital Economics, said that a prolonged period of deflation could hit the country's debt consolidation and "could necessitate further austerity measures" -- something that Prime Minister Mariano Rajoy, who trails the populist, anti-austerity Podemos ("We Can") party in the polls, might well be reluctant to do in 2015, an election year.