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Celebración vs. festejo vs. fiesta

The words celebración, festejo, and fiesta in Spanish all refer to celebrations, but they are used in slightly different contexts with some nuances.

Celebración

A2
Celebración corresponds directly to the English word celebration. It refers to a social gathering or event that is being held to celebrate a particular occasion, such as a birthday, anniversary, holiday, etc.
La celebración del cumpleaños de Juan fue muy divertida.
(Juan's birthday celebration was very fun.)
Cada año, se lleva una gran celebración por el Día Nacional.
(Every year, there is a big celebration for National Day.)

Festejo

B1
Festejo is also a celebration, particularly an organized series of special events and activities created to honor an occasion or person. Compared to celebración, it emphasizes the action of celebrating more than the event itself.
El festejo por la victoria del equipo de futbol duró toda la noche.
(The celebration for the football team's victory lasted all night.)
Después del festejo de su ascenso, se sentía muy contento.
(After the celebration of his promotion, he felt very happy.)

Fiesta

A1
Fiesta can also mean party, in addition to a celebration. This term is often used for informal gatherings involving music, dance, food and drinks.
A Ana le encanta organizar fiestas en su casa.
(Ana loves throwing parties at her house.)
La fiesta de fin de año fue inolvidable.
(The end-of-year party was unforgettable.)

Summary

In conclusion, while celebración, festejo, and fiesta all reference celebrations in Spanish, their usage varies subtly based on the context and nature of occasion. Celebracion aligns most closely with the English celebration, while festejo emphasizes the action of celebrating. Lastly',fiesta' often denotes informal party-like gatherings.