Spain Q1 GDP Growth Confirmed at 0.7%


Spain’s economy advanced 0.7 percent on quarter in the three months to March 2019, after a 0.6 percent expansion in the previous period and matching a preliminary reading and market expectations, final figures showed. It was the strongest growth rate since the fourth quarter of 2017, as fixed investment rebounded while both household and government spending expanded at the same pace.

Fixed investment went up 1.4 percent, rebounding from a 0.2 percent contraction in the fourth quarter of 2018, boosted by investment in tangible fixed assets (1.9 percent from -0.3 percent in Q4), namely machinery, equipment, weapon system and biological resources (4.3 percent from -2.7 percent). Investment in intellectual property products shrank 1.1 percent after increasing 0.5 percent in the prior period. Meanwhile, both government and household spending advanced 0.4 percent, the same pace as in the in the last quarter of 2018. 

Imports shrank 0.3 percent (vs a flat reading in Q4) while exports were unchanged (vs 0.7 percent in Q4).

On the production side, the industrial activity expanded 1.1 percent in the three months to March, after contracting 1.0 percent in the previous period and construction output grew 1.8 percent (vs 1.0 percent in Q4). On the other hand, the primary sector shrank 2.0 percent, after growing 4.6 percent while services output advanced 0.8 percent, the same pace as in the last quarter of 2018. 

On an annual basis, the GDP rose 2.4 percent, faster than a 2.3 percent expansion in the prior period and in line with market consensus and a preliminary reading.

Spain Q1 GDP Growth Confirmed at 0.7%


INE | Stefanie Moya | stefanie.moya@tradingeconomics.com
6/28/2019 7:38:37 AM