Home | Topics | statistics

2011 Q1 the Spanish economy up 0.3 % (Q on Q) 0.8 % (Y on Y)

Printer-friendly versionPDF version


In 2011 Q1 the Spanish economy continued along the path of moderate recovery embarked

upon a year earlier, with quarter-on-quarter GDP growth of 0.3 %, which took the year-on-year

rate to 0.8 %. This trajectory was once again underpinned by the strength of net external demand,

which contributed 1.4 pp to year-on-year GDP growth, while domestic demand continued

to display considerable slackness, interrupted only by a rise in government consumption.

The data available for Q2 suggest that activity weakened, against a background marked

by the worsening of the sovereign debt crisis in the euro area. Estimates based on the

conjunctural information available indicate that GDP posted a quarter-on-quarter growth

rate of 0.2 %, with the year-on-year rate standing at 0.7 %. On the expenditure side, the

slowdown in activity would have been a consequence of the decline in national demand

(-1.9 % year-on-year), which was more pronounced than in Q1, while the positive contribution

of net external demand rose to 2.6 pp. It should be noted that the year-on-year rates

for this quarter are affected by the exceptional volume of spending in the same period of

last year, in anticipation of the rise in VAT on 1 July and the imminent ending of various

government programmes to support spending (including Plan 2000E, which provided direct

support for car purchases).

On the supply side, the weakening of industrial activity was notable, partly due to the discontinuity

in productive processes prompted by the scarcity of certain inputs following the

earthquake in Japan in March and the disruption of agricultural production caused by the EU

food crisis. Market services, for their part, continued to display a moderate recovery, while

the value added in construction fell again, although at a lower rate than in the preceding

months. In these circumstances, employment declined in year-on-year terms (by -0.9 %,

according to the EPA) although it stabilised in quarter-on-quarter terms, owing to the more

favourable behaviour of employment in services, and the rate of unemployment posted a

small decline (to 20.9 % of the labour force). Inflation turned downward in Q2, confirming the

temporary nature of some of the price rises in the middle months of 2010. After rising in April

and May, the CPI excluding energy and unprocessed food prices decelerated in June to

stand at 1.7 %, a trend that will most probably be extended over the coming months, once

the effect of the increase in VAT in July last year on prices is absorbed. In this respect, the

leading indicator of the CPI showed a further reduction in July, to 3 %.



Short URL
Asymptotix on Twitter

Are the key legislative pillars such as Basel II & III, UCITS IV and Solvency II forcing you to re-examine how you identify, measure and manage risk and capital?

Asymptotix work closely with our partners to help clients develop a more proactive, systematic and integrated approach to governance and risk management to deliver proper value.

Asymptotix can offer the support you need to deliver on time. Read more...

Is the goal of your website to sell services or products, educate, or collect data?

A positive customer experience is vital to conversion, no matter what your conversion goals may be. Our designers and developers will create a positive experience to maximize your conversions and deliver the optimal return on your investment. We strive to find the perfect balance between the web site’s design and functionality.

Asymptotix implements interactive solutions for European companies. From corporate websites to social communities, our clients will tell you an investment in building a scalable online experience will deliver long-term tangible benefits.

Based in Luxembourg we can help you all over Europe. Our multi-lingual team can work with projects and speak your language! Read more...