In its flash estimate, the National Statistics Institute (INE) also said that compared to the same period of 2015, the economy expanded just 0.8 percent, below the average forecast of 1.1 percent in a Reuters poll of economists.
In the fourth quarter the economy grew 1.3 percent year-on-year. The average estimate for quarter-on-quarter growth was 0.4 percent. The INE said a drop in exports weighed on economic growth, while internal demand had a positive contribution.
In the annual comparison, a slowdown in exports and investment both impacted growth negatively.
Last year, the economy grew 1.5 percent, marking an acceleration from 0.9 percent in 2014, which was the first year of growth after a long recession and debt crisis.
This year, the Socialist government expects the economy to grow 1.8 percent, although Brussels, the International Monetary Fund and many analysts project lower growth, in line with last year's, and warn the country may require additional budget measures to meet its deficit goals.