Spain: Economy maintains a steady course at the outset of the year
April 27, 2018
The economy continued to sail smoothly at the start of the year, buttressed by a solid external scenario and resilient domestic demand. On a seasonally-adjusted quarter-on-quarter basis, GDP growth came in at 0.7% for a third consecutive quarter in Q1, matching market expectations and further showcasing Spain’s economic resilience when compared with other European peers, where growth decelerated in Q1 following a hot pace of expansion late last year.
On an annual basis, GDP growth moderated to a three-year low of 2.9% in the first quarter from the 3.1% expansion recorded in the fourth quarter. Although the preliminary release does not include a breakdown by components, high-frequency indicators suggest the external sector contributed to growth in Q1 after an anemic performance in Q4, while domestic demand also supported the expansion on account of upbeat investment data and resilient household spending.
The Statistical Institute will release more detailed data on 25 May.
Spain GDP Forecast
The Central Bank expects the economy to grow 2.7% in 2018 and 2.3% in 2019. FocusEconomics Consensus Forecast panelists project that GDP will expand 2.7% next year, which is unchanged from last month’s forecast. In 2019, panelists expect the economy to expand 2.3%.
Author: David Ampudia, Economist