In the second quarter, private consumption growth slowed to 6.1 percent (from 8.8 percent in Q1); as well as gross fixed capital formation (0.4 percent from 4.2 percent). Within fixed investment, expenditure on machinery & equipment increased by 4.7 percent (easing from 6.1 percent in Q1) and expenditure on building & construction fell by 3 percent, as against a 1.9 percent gain in the first quarter. Additionally, exports of goods rose softer (4.6 percent from 5.2 percent), as well as imports (6.3 percent from 6.9 percent). Exports of services increased at slower 6.1 percent (from 7.9 percent) and imports also slowed to 0.4 percent (from 4.2 percent). Contrarily, government spending expanded at a faster pace (4.4 percent from 3.9 percent in Q1).
On a quarterly basis, the GDP shrank 0.2 percent, following a downwardly revised 2.1 percent rise in the prior quarter. It was the first quarterly contraction since the first quarter of 2016, as private consumption declined by 0.6 percent (from 3.3 percent in the first quarter of 2018). In addition, international trade contributed negatively to GDP growth, as exports of goods and services dropped in Q2 (-0.4 percent and -3.2 percent from 3.1 percent and 5.2 percent, respectively); as well as imports of goods and services, which fell 0.1 percent and 2.1 percent in Q2 (from 2.3 percent and 3.6 percent, respectively). Contrarily, government spending went up 1.6 percent, from 1.2 percent in the previous quarter.