Spain GDP

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Spain: Recession deepens in Q2

August 28, 2012

In the second quarter, GDP contracted 0.4% over the previous quarter in seasonally adjusted terms, according to more complete data released by the National Statistics Office (INE) on 28 August, which confirmed the advance estimate published on 30 July. The reading represented a slight deterioration compared to the 0.3% decline recorded in the first quarter and marks the third consecutive quarter of declining output for the Spanish economy. The deterioration over the previous quarter was caused by a sharper decline in the domestic sector. Private consumption contracted 1.0% over the previous period, contrasting the 0.4% quarter-on-quarter increase recorded in the first quarter. Similarly, government consumption declined 0.7% (Q1: -0.9% qoq). Moreover, gross fixed investment fell a sharp 3.0% over the previous quarter, exceeding the 2.7% decline observed in Q1. On the external side of the economy, exports bounced back from a 1.8% contraction in the first quarter to a 1.6% expansion in Q2. Imports, on the other hand, remained in negative territory, declining 1.5% over the previous quarter (Q1: -2.0% qoq), therefore driving up the external sector's net contribution to overall growth. On an annual basis, GDP declined 1.3% over the same quarter last year, more than doubling the 0.6% decline recorded in the first quarter. Simultaneously, the statistical institute published revised GDP data for the 2010-11 period. According to the new figures, the economy contracted 0.3% in 2010 (previously reported: -0.1%) and expanded 0.4% in 2011 (previously reported: +0.7%). The Central Bank projects the economy to contract 1.5% this year and to expand only 0.2% in 2013. The government now expects the economy to contract 1.7% this year and to decline 0.5% in 2013 In the second quarter, GDP contracted 0.4% over the previous quarter in seasonally adjusted terms, according to more complete data released by the National Statistics Office (INE) on 28 August, which confirmed the advance estimate published on 30 July. The reading represented a slight deterioration compared to the 0.3% decline recorded in the first quarter and marks the third consecutive quarter of declining output for the Spanish economy. The deterioration over the previous quarter was caused by a sharper decline in the domestic sector. Private consumption contracted 1.0% over the previous period, contrasting the 0.4% quarter-on-quarter increase recorded in the first quarter. Similarly, government consumption declined 0.7% (Q1: -0.9% qoq). Moreover, gross fixed investment fell a sharp 3.0% over the previous quarter, exceeding the 2.7% decline observed in Q1. On the external side of the economy, exports bounced back from a 1.8% contraction in the first quarter to a 1.6% expansion in Q2. Imports, on the other hand, remained in negative territory, declining 1.5% over the previous quarter (Q1: -2.0% qoq), therefore driving up the external sector's net contribution to overall growth. On an annual basis, GDP declined 1.3% over the same quarter last year, more than doubling the 0.6% decline recorded in the first quarter. Simultaneously, the statistical institute published revised GDP data for the 2010-11 period. According to the new figures, the economy contracted 0.3% in 2010 (previously reported: -0.1%) and expanded 0.4% in 2011 (previously reported: +0.7%). The Central Bank projects the economy to contract 1.5% this year and to expand only 0.2% in 2013. The government now expects the economy to contract 1.7% this year and to decline 0.5% in 2013


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Spain GDP Type Q2 2012

Note: Quarter-on-quarter and annual variation of seasonally adjusted gross domestic product.
Source: National Statistical Institute (INE) and FocusEconomics Consensus Forecast.


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