GDP in Spain
Spain - GDP
Growth slows in Q2 on weaker domestic demand
Economic activity moderated in the second quarter, according to an advance GDP estimate released by the National Statistics Institute (INE) on 31 July. The economy grew a seasonally-adjusted 0.5% from the previous quarter in Q2, easing from the robust 0.7% expansion recorded in Q1.
Waning domestic demand drove the overall deceleration. Private consumption softened slightly, expanding 0.3% quarter-on-quarter (Q1: +0.4% quarter-on-quarter) amid slower employment growth in Q2. Similarly, public spending growth dipped to a two-and-a-half year low (Q2: +0.2% qoq; Q1: +0.4% qoq). Meanwhile, fixed investment contracted 0.2% from the previous quarter (Q1: +1.4% qoq), mainly due to a marked fall in machinery and equipment investment.
In contrast, the external sector performed strongly, despite the wider pullback in the Eurozone. Exports of goods and services grew 1.8% quarter-on-quarter, marking the fastest clip in over two years, after having stagnated in the previous quarter. Imports, meanwhile, recovered and rose a solid 1.0% on a quarterly basis (Q1: -0.3% qoq).
Looking ahead, growth is expected to ease this year as the business cycle matures. Domestic demand is set to underpin overall activity, with sustained, albeit slightly slowing, job creation powering household spending. Political and policy uncertainty, a tourism industry which is past its peak and the possibility of a hard Brexit cloud the outlook.
The INE will release the second GDP estimate on 30 September.
The Central Bank expects the economy to grow 2.2% in 2019 and 1.9% in 2020. FocusEconomics Consensus Forecast panelists project that GDP will expand 2.3% this year, which is unchanged from last month’s forecast. In 2020, panelists see the economy growing 1.8%.
Spain - GDP Data
|Economic Growth (GDP, annual variation in %)||-1.7||1.4||3.6||3.2||3.0|
5 years of economic forecasts for more than 30 economic indicators.
Spain GDP Chart
Source: National Statistical Institute (INE).
|Bond Yield||0.34||5.62 %||Jul 30|
|Exchange Rate||1.11||0.65 %||Jul 31|
|Stock Market||8,971||-0.74 %||Jul 31|
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August 8, 2019
Industrial production rose 1.8% year-on-year in seasonally- and calendar-adjusted terms in June, accelerating from May’s 1.4% increase.
August 5, 2019
Reflecting the ongoing contraction of the goods-producing sector and slower growth in the services sector, the IHS Markit composite Purchasing Managers’ Index (PMI) edged down from 52.1 in June to 51.7 in July, the lowest reading since November 2013.
July 31, 2019
The Spanish Board of Architects approved 9,525 new construction permits in May, according to data published by the Ministry of Public Works.
July 31, 2019
Economic activity moderated in the second quarter, according to an advance GDP estimate released by the National Statistics Institute (INE) on 31 July.
July 29, 2019
Retail sales rose a mild 0.3% year-on-year in June, following a strong 3.1% upturn logged in May, which had marked a seven-month high.