La sagrada familia in Spain

Spain GDP Q2 2019

Spain: Second estimate revises Q2 growth marginally down to three-year low

Economic activity slowed slightly in the second quarter, according to a second GDP estimate released by the National Statistics Institute (INE) on 30 September. The economy grew a seasonally-adjusted 0.4% from the previous quarter in Q2, marginally down from both the 0.5% increase reported in the preliminary estimate and the revised 0.5% expansion recorded in Q1 (previously reported: +0.7% quarter-on-quarter). The second-quarter expansion marked the lowest reading since Q2 2016.

The moderation was driven by weaker domestic demand. Private consumption growth was flat in Q2 in quarter-on-quarter terms (previously reported: +0.3% qoq), easing from Q1’s revised 0.2% (previously reported: +0.4% qoq) amid a slowdown in employment growth. Meanwhile, public spending growth was revised up from 0.2% to 0.4% in Q2, but was still slightly below Q1’s revised 0.5% rise (previously reported: +0.4% qoq). Lastly, fixed investment fell 0.2% from the previous quarter (Q1: +1.4% qoq), reflecting a contraction in machinery and equipment investment.

On the external front, exports of goods and services recorded a strong performance despite flagging activity in the EU and global headwinds. Export growth in Q2 came in at 1.7% quarter-on-quarter, marginally down from the 1.8% previously reported but up from the revised 0.6% expansion logged in Q1 (previously reported: 0.0% qoq). Meanwhile, imports increased 0.9% (previously reported: +1.0% qoq), which was up from Q1’s slight rise of 0.1% (previously reported: -0.3% qoq).

Looking ahead, growth is seen easing this year as the business cycles matures and a deteriorating global economic environment weighs on the economy. In 2020, GDP is expected to slow further due to softer household consumption amid weakening employment growth, a slowdown in the tourism sector and waning investment activity. Moreover, mounting political uncertainty further clouds the short-term outlook, as the country is set to hold new elections on 10 November after the ruling Socialist party failed to form a new government.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest