GDP records smallest drop since Q2 2023 in Q1

GDP fell at a softer pace of 1.7% year on year in the first quarter, above the 4.3% contraction logged in the fourth quarter of last year. Q1's reading marked the smallest drop since Q2 2023. On a seasonally adjusted quarter-on-quarter basis, GDP rebounded, expanding 1.4% in Q1, contrasting the previous period's 0.6% contraction and marking the best result since Q4 2022.

Private consumption growth fell to 2.0% in Q1, marking the weakest expansion since Q1 2021 (Q4 2023: +4.9% yoy). Government spending picked up to a 6.3% increase in Q1 (Q4 2023: +4.5% yoy). Fixed investment growth accelerated to 4.7% in Q1, following the 2.8% increase in the previous quarter. Exports of goods and services fell 6.6% on an annual basis in the first quarter, which was above the fourth quarter's 10.7% contraction. Conversely, imports of goods and services growth moderated to 1.8% in Q1 (Q4 2023: +5.8% yoy), marking the weakest reading since Q2 2021.

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