Growth in the fourth quarter was driven by increases in public spending (5.5 percent in Q4 from 2.3 percent in Q3), gross fixed capital formation (0.5 percent from -12.1 percent) and exports (1.7 percent from -2.6 percent). In contrast, household consumption growth slowed to 1 percent (1.9 percent in Q3) and imports shrank 1.9 percent.
On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 0.9 percent in the fourth quarter, up from a 0.4 percent increase in the three months to September, the fastest pace in five quarters.
The strong growth in Q4 was not enough to lift the expansion for full year. In 2014, the economy rose only 1.9 percent, the slowest pace in five years, as growth in government spending and consumption was not enough to offset a decline in investment and slower exports.
On the expenditure side, gross fixed capital formation fell by 6.1 percent. Investment in machinery and equipment dropped sharply by 18.8 percent, hurt by lower investment in industrial machinery, mining and transport equipment. Government spending rose 4.4 percent while household consumption advanced 2.2 percent led by an increase in health services, communications and transport. Exports expanded a meager 0.7 percent and imports fell by 7 percent.
On the production side, the fishing sector grew 18.6 percent and electricity, gas and water increased by 4.9 percent. Construction activities closed the year with a 1.5 percent rise while mining advanced only 1.3 percent due to lower copper production. Agriculture and forestry increased marginally by 0.4 percent, after showing negative results in the second and third quarter.