GDP records fastest expansion since Q3 2022 in the first quarter

GDP bounced back in the first quarter, growing 0.9% on a seasonally adjusted quarter-on-quarter basis, contrasting the 3.6% contraction logged in the fourth quarter of last year. Q1's reading marked the best result since Q3 2022. On an annual basis, economic activity dropped 6.5% in Q1, following the previous quarter's 8.7% decrease.

Household spending increased 0.6% in the first quarter, which was above the fourth quarter's flat reading. Government consumption dropped at the sharpest pace since Q1 2022, contracting 1.1% (Q4 2023: +1.1% s.a. qoq). Meanwhile, fixed investment contracted 40.6% in Q1, marking the worst reading since Q1 2022 (Q4 2023: +64.4% s.a. qoq). On the external front, exports of goods and services rebounded, growing 7.3% seasonally adjusted quarter on quarter in the first quarter, which marked the best reading since Q4 2020 (Q4 2023: -0.5% s.a. qoq). Conversely, imports of goods and services deteriorated, contracting 6.3% in Q1 (Q4 2023: +15.1% s.a. qoq), marking the worst reading since Q1 2023.

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