Spanish GDP Growth Confirmed at 8-Year High

The Spanish economy advanced 1 percent on quarter in the three months to June, matching market expectations and following a 0.9 percent expansion in the previous period, final estimates showed. Consumer spending was the main driver of growth while government consumption slowed.
Joana Ferreira | 8/27/2015 8:52:09 AM
Quarter-on-quarter, private consumption expenditure grew 1 percent, from 0.7 percent in Q1. Gross fixed capital formation expanded at a faster 2 percent (1.4 percent in Q1), driven by a 2.2 percent increase in fixed assets (from 1.6 percent), as capital goods and cultivated assets expanded 3.2 percent (from 1.6 percent), while construction increased at a slower 1.4 percent (from 1.6 percent). Also, investments in intellectual property products grew 0.9 percent (from 0.2 percent in the previous two quarters). By contrast, government consumption expenditure increased slightly by 0.4 percent, compared with the growth of 1.7 percent in the first quarter of 2015.

Total exports grew by 1.6 percent, following a 0.4 percent increase in the previous quarter. At the same time, imports increased by 2.3 percent, compared with the 0.4 percent expansion in the first quarter of 2015.

On the production side, services sector went up by 0.8 percent from 0.6 percent in the precedent quarter. Industrial activities increased at a slower 1.4 percent compared to 1.9 percent growth in Q1, as construction grew 0.8 percent (from 1.4 percent) while manufacturing production advanced 1.6 percent (from 1.4 percent). Agriculture expanded 2.8 percent after a 0.5 percent increase in the precedent period. 

Year-on-year, the economy expanded 3.1 percent, the highest value since the first quarter of 2008, mainly driven by public spending. Government consumption rose 1 percent (from 0.2 percent in Q1), household consumption expanded by 3.5 percent (the same pace as in Q1) and gross fixed capital formation grew 6.1 percent (the same pace as in Q1). 

Employment expanded by 0.9 percent on quarter and by 2.9 percent compared with Q2 2014.

Spanish GDP Growth Confirmed at 8-Year High