Investment in Spain

Spain Investment | Economic News & Forecasts

Spain - Investment

Second estimate confirms robust growth in Q1

Economic activity accelerated at the start of the year, according to a second GDP estimate released by Spain’s Statistical Institute (INE) on 28 June. The economy grew a seasonally-adjusted 0.7% from the previous quarter in Q1, up a notch from the 0.6% expansion recorded in Q4 and confirming the preliminary reading.

Both domestic and external demand underpinned Q1’s expansion. After contracting 0.2% quarter-on-quarter in Q4, fixed investment recovered in Q1, expanding 1.4% in quarter-on-quarter terms on the back of a strong rebound in machinery and equipment investment. Moreover, private consumption kept pace, expanding 0.4% quarter-on-quarter (Q4: +0.4% quarter-on-quarter), as did government spending growth (Q1: +0.4% qoq; Q4: +0.4% qoq).

Meanwhile, despite muted export growth (Q1: +0.0% qoq; Q4: +0.7% qoq), the external sector also positively contributed to growth as import growth of goods and services dropped 0.3% on a quarterly basis (Q4: +0.0% qoq).

The economy is seen losing some steam this year amid the maturing business cycle. Healthy, albeit slowing, consumer spending should underpin the overall expansion, fueled by sustained job creation and gradually rising incomes. The main downside risks stem from political uncertainty, a cooling tourism sector, the possibility of a hard Brexit and global trade conflicts.

FocusEconomics panelists project growth of 2.3% in 2019, which is up 0.1 percentage points from last month’s forecast, and 1.8% in 2020.

Spain - Investment Data

2013  2014  2015  2016  2017  
Investment (annual variation in %)-3.4  4.7  6.7  2.9  4.8  

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Spain Facts

ValueChangeDate
Bond Yield0.415.62 %Jul 10
Exchange Rate1.130.65 %Jul 11
Stock Market9,280-0.74 %Jul 11

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