Investment in Spain

Spain - Investment
Economy still manages grow in Q4 2020 despite pandemic’s resurgence
The economy lost significant momentum in the final quarter of 2020, due to the reimposition of restrictions amid a second wave of Covid-19 infections. According to a preliminary reading, GDP grew 0.4% on a seasonally-adjusted quarter-on-quarter basis in Q4, markedly below the unprecedented 16.4% surge logged in Q3. That said, the result beat market analysts’ expectations of a contraction. Nevertheless, the recovery remains far from complete as output was still down 9.1% in year-on-year terms (Q3 2020: -9.0% yoy). For the year as a whole, the economy shrank a staggering 11.0%, nearly tripling the contraction experienced during the 2009 global financial crisis (2019: +2.0%).
A deterioration in both domestic and external demand drove the fourth quarter’s slowdown. Consumer spending rose 2.5% on a quarterly basis in Q4, significantly below the 20.8% jump logged in Q3 as renewed restrictions led to a scaling back in business activity and household purchases. Moreover, fixed investment declined 3.1% quarter-on-quarter as residential and capital goods investment retreated (Q3: +21.7% s.a. qoq). Meanwhile, government spending gained traction again, growing a robust 4.0% from the prior quarter (Q3: +1.2% s.a. qoq).
The external sector also experienced a setback. Exports of goods and services dipped 1.4% (Q3: +29.9% s.a. qoq) as rising infections across Europe triggered the reintroduction of containment measures and sapped demand in turn, with the vital tourism industry continuing to suffer. Imports, meanwhile, were up barely 0.4% in quarterly terms (Q3: +27.0% s.a. qoq). Taken together, net trade weighed on the headline reading, after making a positive contribution in the prior quarter.
Commenting on the fourth quarter’s outturn, Edoardo Campanella, economist at Unicredit, highlighted:
“Although these flash estimates are potentially subject to sizable revisions in normal times and even more in the current environment, Spain’s GDP performance at the end of 2020 is certainly remarkable. This partly reflects the resilience and the dynamism that the Spanish economy has displayed over the last few years, when it consistently outpaced the eurozone. But it also reflects the adoption of relatively mild restrictions during the fall that left substantial freedom of movement to Spanish consumers – particularly when compared to some of their European peers.”
The INE will release the second GDP estimate on 31 March.
The Central Bank expects the economy will grow 4.2%–8.6% in 2021 and 3.9%–4.8% in 2022. FocusEconomics Consensus Forecast panelists, meanwhile, project that GDP will expand 5.5% in 2021. In 2022, panelists see the economy growing 5.7%.
Spain - Investment Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Investment (annual variation in %) | 4.9 | 2.4 | 5.9 | 5.3 | 1.8 |
Spain Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 0.46 | 5.62 % | Dec 31 |
Exchange Rate | 1.12 | 0.65 % | Dec 31 |
Sample Report
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Economic News
-
Spain: Current account surplus narrows considerably at the end of 2020
February 26, 2021
Spain’s current account balance recorded a surplus of EUR 729 million in December 2020, significantly below both the EUR 2.2 billion surplus logged in December 2019 and November 2020’s EUR 3.3 billion surplus.
-
Spain: Housing permits decline in December; housing prices fall for third consecutive quarter in Q4
February 25, 2021
The Spanish Board of Architects approved 7,059 new construction permits in December 2020, according to data published by the Ministry of Public Works.
-
Spain: Industrial output contracts at softest pace in one year in December
February 8, 2021
Industrial production slid 0.6% year-on-year in seasonally- and calendar-adjusted terms in December 2020, after contracting 3.7% in November.
-
Spain: Composite PMI falls further into contractionary terrain in January amid Covid-19 woes, weak demand and adverse weather conditions
February 3, 2021
Reflecting a sharp decline in services activity and a swing back to contraction by the manufacturing sector, the IHS Markit composite Purchasing Managers’ Index (PMI) dropped to 43.2 in January from 48.7 in December 2020.
-
Spain: Housing permits surge in November 2020
January 29, 2021
The Spanish Board of Architects approved 9,014 new construction permits in November 2020, according to data published by the Ministry of Public Works.