- The composition is more balanced thanks to a rebound in exports of 8.4%, the highest rate in six years
- The investment accelerates up to 3.8%, especially that destined for capital goods that grows 5%
- The differential with respect to the euro zone remains favorable to Spain, which already borders the maximum level of GDP prior to the crisis
The Spanish economy grows at an annual rate of 3% in the first quarter of the year and 0.8% quarter-on-quarter, one tenth more than the previous quarter, according to the National Accounting data published by the INE. The strong thrust of economic activity is thus maintained thanks in part to investment, which translates into the creation of 435,000 full-time equivalent jobs in the last year. This is a more balanced growth, since the foreign sector contributes 0.8 points to GDP thanks to the fact that exports increase at a rate of 8.4%, the highest in the last six years. Spain maintains a high growth differential in relation to the euro zone and is already approaching the maximum level of GDP before the crisis.
After the data for the first quarter of the year, the Spanish economy begins the fourth year of the economic recovery. It does so at rates of 0.8% quarterly and 3% annually, which means eight quarters in a row with an advance equal to or greater than this percentage. The pace of economic activity is maintained at the beginning of 2017, which, according to the indicators available so far, also occurs during the second quarter, according to a prudent estimate. If this trend is confirmed, the government forecast contained in the Stability Program sent to Brussels, which estimates an average annual growth of 2.7% in 2017, would be comfortably fulfilled.
In this way, the growth differential favorable to Spain is maintained in relation to the average for the euro zone, which, according to the latest Eurostat data, has stood at 0.5% quarter-on-quarter and 1.7% year-on-year. It also exceeds the growth data of large countries such as Germany (1.7% year-on-year and 0.6% quarter-on-quarter), France (0.8% and 0.3%) or Italy (0.8% and 0.2% ) and also from the United Kingdom (2.1% and 0.3%). The speed of Spanish growth makes it possible to touch in the first quarter of the year the maximum income level prior to the crisis, a volume that will be exceeded in the second quarter, according to the most recent indicators.
The growth of the Spanish economy has internal demand as the main engine (it contributes 2.2 points), but its composition is balanced a little more thanks to the contribution of the foreign sector, positive for the fourth consecutive quarter. Household consumption moderates half a point at an annual rate, up to 2.5%, while public consumption stabilizes (0.1%). The investment gains dynamism (3.8%, 1.6 points more), especially that destined for capital goods, which accelerates more than two points, until reaching an annual rate of 5%. Investment in construction accelerates 1.1 points, up to 3%. The foreign sector contributes 0.8 points, thanks to the fact that exports grow (8.4%) well above imports (6.4%), reflecting the competitiveness gains of the Spanish economy.
Employment advanced 2.5%, two tenths less than the previous quarter, which means the net creation of 435,000 new full-time equivalent jobs in the last year. Taking into account the evolution of the associated average working day, there is an acceleration of three tenths in the annual rate of hours actually worked, which stands at 1.8%. The remuneration of employees increases from 2.9% to 3.1% in annual rate and the average per employee increases 0.4%, compared to 0.1% in the fourth quarter of last year. The unit labor cost is -0.1% in the first quarter.
