Spain Q1 GDP Growth Beats Forecasts

Spain’s economy advanced 0.7 percent on quarter in the three months to March 2019, following a 0.6 percent expansion in the previous period an above market consensus of a 0.6 percent increase, a flash estimate showed. It was the strongest growth rate since the last quarter of 2017, as fixed investment rebounded while net trade contributed negatively to the GDP growth.

According to preliminary estimates, fixed investment grew 1.5 percent, rebounding from a 0.2 percent contraction in the prior quarter, mostly driven by investment in tangible fixed assets shrank (1.9 percent from -0.2 percent in Q4), of which machinery, equipment, weapon system and biological resources (3.8 percent from -2.7 percent). Investment in intellectual property products shrank 1.0 percent after expanding 0.5 percent in the previuos period. Meantime, government spending expanded 0.4 percent, the same pace as in the in the fourth quarter of 2018 while household consuptiom slowed to 0.3 percent from 0.4 percent. 

Both exports (-0.5 percent from 0.7 percent) and imports (-1.1 percent from a flat reading) contracted.

On the production side, the industrial activity advanced 1.4 percent in the three months to March, after contracting 1.0 percent and construction output grew 1.8 percent (vs 1.0 percent in Q4). On the other hand, the primary sector shrank 2.0 percent in the first quarter of the year, after expanding 4.6 percent in the prior period while services output rose 0.8 percent, the same pace as in the previous quarter. 

On an annual basis, the GDP is expected to expand 2.4 percent in the first quarter of 2019, higher than a 2.3 percent growth in the prior quarter and beating market forecasts of a 2.3 percent expansion.

Spain Q1 GDP Growth Beats Forecasts

INE | Stefanie Moya |
4/30/2019 7:49:56 AM