National demand drives Spanish GDP growth to 0.6% in the fourth quarter of 2023
March 27, 2024 – The Spanish Gross Domestic Product (GDP) registered a growth of 0.6% in the fourth quarter of 2023 compared to the previous quarter, according to data published by the National Institute of Statistics (INE).
The national demand was the main driver of GDP growth in the fourth quarter, with a contribution of 0.4 points. Household final consumption spending grew by 0.2%, while that of Public Administrations increased by 1.0%. Gross fixed capital formation also contributed to growth, with a rate of 0.6%.
For its part, the external demand contributed 0.1 points to GDP growth. Exports of goods and services grew by 2.7%, while imports increased by 2.5%.
In year-on-year terms, Spanish GDP grew by 2.0% in the fourth quarter of 2023, one tenth more than in the previous quarter. Domestic demand contributed 2.1 points to year-on-year growth, while external demand subtracted 0.1 points.
The employment It also continued to grow in the fourth quarter. The number of hours actually worked increased by 2.8% year-on-year, while full-time equivalent jobs increased by 3.9%.
Productivity, however, remained negative in the fourth quarter. Productivity per full-time equivalent job fell 1.8% year-on-year, while productivity per hour actually worked fell 0.8%.
In the whole of 2023, the Spanish GDP grew by 2.5% in volume. Domestic demand contributed 1.7 points to growth, while external demand contributed 0.8 points.
These figures are positive and confirm the economic recovery of Spain, although productivity remains a concern. The Spanish Government has implemented measures to boost productivity, such as labor market reform and investment in education and innovation.
Economic growth expected to continue in 2024, although at a more moderate pace than in 2023. The main risks for the Spanish economy are the war in Ukraine, inflation and the rise in interest rates.
You can access the press release at the following link:
Press Release
