• GDP rises 1% in the second quarter, one tenth more than in the first quarter and triple the average of the euro countries
  • The contribution of national demand increases to two tenths, up to 3.3 points, and improves the contribution of the foreign sector
  • The jobs in complex time rose 2.9% in the last year and accelerated nine tenths hours worked

The Spanish economy grew by 1% in the second quarter of this year compared to the first and 3.1% in the last twelve months, according to the Quarterly National Accounts published by the National Statistics Institute (INE). These are rates that recover the growth rates of 2007, that is, prior to the recession that began a year later. They also reflect that, in relation to the euro zone average, Spain is growing at a rate that more than triples the average of the countries with which we share currency. Job creation is also accelerating, with a growth of 2.9% in the last year, which means 477,400 new full-time equivalent jobs.

It is a robust and balanced growth that is the result of the correction of the accumulated macroeconomic imbalances and the reforms carried out. Both internal and external demand improve the contribution to economic growth. Consumption and investment contribute to the annual growth of GDP with 3.3 percentage points, two tenths more than in the first quarter, and give strength to the recovery of the Spanish economy. The foreign sector subtracts 0.2 points, two tenths less than in the first quarter, which is explained by an acceleration of exports of one percentage point (up to 6%), while imports do so by 0.2 points (up to 7.2%). These data demonstrate the strong dynamism of the Spanish foreign sector and are in turn consistent with the evolution of domestic demand.

Among the components of the national demand, the highest rate of progress in spending on final consumption of households stands out, which accelerates three tenths in quarter-on-quarter terms, up to 1%, with an interannual growth that remains at 3.5%. The final consumption expenditure of the Public Administrations, on the other hand, slows down 1.3 points, reaching a quarter-on-quarter rate of 0.4%.

Gross fixed capital formation is more dynamic and shows a 2% quarter-on-quarter increase, six tenths higher than the first quarter. This improvement is explained by the acceleration of investment in capital goods and cultivated assets, whose increase reaches 3.2% quarter-on-quarter, twice as much as in the previous quarter. To this we must add the greatest advance in intellectual property products, which recorded a quarterly growth of 0.9% in the second quarter, seven tenths higher than the first. On the other hand, investment in construction slows down two tenths, up to 1.4% quarter-on-quarter.

The lower detraction of the net external demand to the inter-annual growth of the GDP is due to an acceleration of the exports more pronounced than the one of the imports, with rates of 6% and 7.2%, respectively, superior in 1 and 0.2 points to the previous quarter. In inter-quarterly terms, the growth of exports reaches 1.6%, a rate that quadruples that of the previous quarter (0.4%) and imports accelerated almost two points, up to 2.3%.

From the supply perspective, the GVA (gross value added) of the services sector accelerated two tenths in the second quarter, registering a quarterly increase of 0.8%, and the agricultural GVA intensified its pace of 2.3 points increase, up to 2.8% quarterly. On the other hand, the VAB of the industry registered a variation of 1.4%, half a point lower than that of the previous quarter and the VAB of the construction advanced 0.8%, six tenths less than in the previous quarter.

The interannual rate of the GDP deflator is in positive territory for the second consecutive quarter, at 0.6%, one tenth above that of the first quarter. This slight acceleration was mainly due to the upturn in the investment deflator, whose variation rate doubled to 1.2%, and the greater increase in the export deflator (0.9%, higher rate in half a point a the first quarter). In year-on-year rates, construction completes a positive year (5.8% in the second quarter), Agriculture returns to positive rates (2.2%) and Industry (3.5%) accelerates.

Finally, employment maintains the acceleration trend started last year. The rate of creation of full-time equivalent employment intensified in the second quarter of 2015, one tenth in quarterly terms, up to 0.9%, which means the net creation of 152,600 full-time equivalent jobs. In interannual terms, employment grew by 2.9%, one tenth more than from January to March, which has led to the creation of 477,400 full-time equivalent jobs. As a result of the evolution of GDP and employment, productivity per employee has gone from decreasing 0.1% year-on-year in the first quarter to growing 0.2% in the second. The salary per employee slows down six tenths in the interannual rate, up to 0.2%, so that unit labor costs (CLU) fall 0.1% after increasing 0.9% in the previous quarter.

Source of the new