Exports and imports are growing at a moderate pace
Spain’s Gross Domestic Product (GDP) expanded by 0.7% in the first quarter of 2024 compared to the previous quarter, according to seasonally adjusted data from the National Institute of Statistics (INE). This rate remains similar to that registered in the last quarter of 2023.
Domestic demand key to growth:
- Domestic demand positively contributed to GDP growth with 0.2 percentage points.
- External demand, on the other hand, contributed 0.5 points.
- Regarding the components of domestic demand, household final consumption expenditure grew by 0.3%, while that of Public Administrations fell by 1.0%.
- Gross capital formation experienced an increase of 1.3%.
- Both exports of goods and services (2.4%) and imports (1.1%) registered positive variations.
All productive sectors grow:
- From the supply side, all major economic sectors registered positive growth in their value added.
- Industrial branches increased by 1.6% quarter-on-quarter, with manufacturing standing out, accelerating its growth to 2.2%.
- The gross value added of construction grew by 2.0% quarter-on-quarter, while that of services increased by 0.3%.
- Primary branches experienced a quarter-on-quarter variation of 2.5%, compared to 5.3% in the previous quarter.
2.4% annual growth:
- In year-on-year terms, the Spanish economy grew 2.4% this quarter, three tenths more than in the previous quarter.
- Domestic demand contributed 2.2 points to this growth, while external demand contributed 0.2 points.
- By components of domestic demand, final consumption expenditure slowed down two tenths compared to the previous quarter, registering an annual growth of 2.6%.
- Gross capital formation experienced a variation of 1.1%, 1.1 points higher than that of the previous quarter.
- Exports of goods and services presented a year-on-year rate of -1.1%, while imports registered a variation of -1.7%.
Employment and productivity:
- The number of hours actually worked increased by 1.3% year-on-year, one point less than in the previous quarter.
- Full-time equivalent jobs increased by 3.4% year-on-year.
- Productivity per full-time equivalent job registered a year-on-year rate of -0.9%, while productivity per hour actually worked was 1.1%.
Overall, the INE figures show positive growth in the Spanish economy in the first quarter of 2024, mainly driven by domestic demand. The economic recovery continues underway, despite the slowdown in exports and the moderation of domestic consumption.
For more information, consult the INE.