Spain’s GDP expands (Q-o-Q), rebounds from 0.4% contraction

Spain’s gross domestic product (GDP) expanded 2.8 percent on quarter in the three months to June of 2021, rebounding from a 0.4 percent contraction in the previous period and beating market expectations of a 2.2 percent advance, a preliminary estimate showed.

As Covid-19 cases went down, the country loosened most of the restrictions on businesses and both household consumption (6.6 percent vs -0.4 percent in Q1) and government expenditure (0.8 percent vs -0.1 percent) rebounded.

Meantime, gross fixed capital formations continued to decline (-1.5 percent vs -0.8 percent) and net foreign demand contributed negatively to growth, as exports went up 0.4 percent (vs -1.7 percent in Q1) while imports rose at a faster 2.9 percent (vs -1.3 percent).

Year-on-year, the economy advanced a record 19.8 percent, after a 4.2 percent drop and also above market forecasts of a 19 percent rebound.

The Spanish government forecasts economic growth at 6.5% this year, despite a resurgence in Covid-19 cases.

Source: Trading Economics