Spain: New Q1 data confirm fastest GDP acceleration in six years
May 29, 2014
GDP expanded a seasonally-adjusted 0.4% over the previous quarter in Q1 according to more complete data released by the National Statistics Office (INE) on 29 May. The print matched the result reported in the 30 April advance estimate and doubled the 0.2% increase tallied in Q4. The Q1 expansion marked the largest quarterly gain since Q1 2008. On an annual basis, GDP rose 0.5% over the same quarter last year, which contrasted the 0.2% decline recorded in Q4 and represented the highest growth rate since Q2 2011.
The expansion mainly reflected a healthy performance in domestic demand. Although private consumption growth decelerated slightly to 0.4% in Q1 (Q4: +0.5% quarter-on-quarter), government spending rebounded to a 4.4% increase (Q4: -3.9% qoq), which marked the largest expansion on record. Gross fixed investment fell 0.6% in Q1, contrasting the 0.7% expansion tallied in Q4.
Exports of goods and services decreased 0.4% (Q4: +0.8% qoq), while imports expanded 1.5% (Q4: -0.6% qoq). As a result, the external sector’s net contribution to overall growth swung from plus 1.5 percentage points in Q4 to minus 1.9 percentage points in Q1.