Spain: GDP tallies the first annual expansion in 10 quarters according to Bank of Spain preliminary estimate
April 24, 2014
GDP expanded 0.4% over the previous quarter in Q1 according to a flash estimate released in the Bank of Spain's Quarterly Report on 24 April. The expansion was an improvement over the 0.2% growth tallied in Q4 2013. The National Statistics Office (INE) will release more detailed data on 30 April.
On an annual basis, the economy expanded 0.5%, which contrasted the 0.2% contraction tallied in the last quarter of 2013. Moreover, if the INE confirms the estimate, this will represent the first expansion in annual terms following nine consecutive quarters of contraction.
The Bank of Spain did not provide detailed data on the contributors to the expansion in GDP, although it did state that domestic demand performed more strongly than in the previous quarter. The external sector contributed to the expansion, although the contribution was lower than in the previous quarter.
The government expects the economy to grow 0.7% in 2014 before accelerating to a 1.2% increase in 2015. FocusEconomics Consensus Forecast panelists' forecast is roughly in line with the government's estimate. They expect GDP to expand 0.8% in 2014, which is unchanged from last month's forecast. In 2015, panelists expect the economy to expand 1.3%.