Spanish GDP Growth Strongest Since Q2 2007

The Spanish economy expanded 0.9 percent on quarter in the first three months of 2015, following a 0.7 percent increase in the previous period, final estimates showed. Public spending was the main driver of growth while private consumption slowed.
Joana Ferreira | 5/28/2015 11:48:40 AM
Public spending expanded 1.6 percent after contracting in the last three quarters (-0.4 percent in Q2 2014, -0.1 percent in Q3 and -1.0 percent in Q4).

Household expenditure rose at a slower 0.7 percent, following a 0.9 percent increase in the previous quarter. Gross fixed capital formation grew 1.3 percent (1.4 percent in Q4), driven by a 1.5 percent increase in fixed assets (from 1.6 percent), as construction expanded 1.5 percent (from 1.4 percent), while capital goods and cultivated assets increased at a slower 1.4 percent (1.9 percent in Q4).

Total exports grew by 1.0 percent, while showed no growth in the previous quarter. At the same time, imports increased at a slower 0.8 percent, compared with the 0.6 percent contraction in the fourth quarter of 2014.

On the production side, services sector went up by 0.6 percent from 0.8 percent in the precedent quarter. Industrial activities advanced 1.8 percent while showed no growth in Q4, as manufacturing grew 1.3 percent (from 0.5 percent). Agriculture expanded 0.4 percent after a 4.5 percent shrinkage in the precedent period. 

Year-on-year, the economy expanded 2.7 percent, beating expectations, mainly driven by domestic demand. Household consumption rose 3.5 percent while gross fixed capital formation grew 6.0 percent. In contrast, net external demand subtracted 0.3 percent to growth (from -0.7 percent in Q4).

Spanish GDP Growth Strongest Since Q2 2007