Spanish GDP Growth Rate Confirmed at -0.5% QoQ in Q1

The Spanish economy shrank 0.5 percent in the first quarter on a quarterly basis, as forecast in a flash estimate and after shrinking by 0.8 percent in the fourth quarter of 2012. On an annual basis the economy contracted 2.0 percent, also unrevised from the preliminary release.

The biggest downward pressure came from domestic demand which contracted 4.9 percent, two tenths lower than in the previous quarter. Final consumption expenditure of households decreased further, from -3.0 percent in the fourth quarter of 2012 to -3.9 percent in the first of 2013, due to a deterioration across all consumption sectors except for durable goods. It should be noted that this negative trend is more pronounced in goods than services.

The contribution of foreign trade to growth increased a tenth, from 2.8 to 2.9 points, over the previous quarter. This result is a consequence of rising exports, although imports have experienced a slowdown in its decline.

Employment fell at an annual rate of 4.5 percent, two tenths higher than the rate in the fourth quarter of 2012, representing a net reduction of 761 000 jobs in a year.

Spanish GDP Growth Rate Confirmed at -0.5% QoQ in Q1

INE | Nuno Fontes |
5/30/2013 9:04:16 AM