During the fourth quarter of 2020, the year-on-year variation rate of the Spanish GDP stood at -8.92%, registering a decrease from the previous quarter. Regarding the labor market, the percentage of unemployed over the active population registered a decrease compared to the previous quarter, down to a rate of 16.13%. On the other hand, year-on-year employment variation rate stood at -3.12%. As for prices, inflation stood at -0.72%. Regarding the exchange rate, the euro appreciated against the dollar in 4Q20, reaching an average exchange rate of 1.19 $/€.

 


Macroeconomic outlook report: Spain 4Q20

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Macroeconomic overview

  • In 4Q20, the Spanish economy registered a y/y variation rate of -8.92%, after decelerating by 0.37 p.p. with respect to 3Q20. This moderate slowdown in the recovery was a consequence of the tightening of pandemic containment measures in the last quarter of 2020.
  • Domestic demand increased by 0.43 p.p. with respect to the previous quarter, reaching a year-on-year variation rate of -6.24%. In the foreign sector, the external demand recorded a decrease of 0.80 p.p., reaching a variation rate of -2.68%, due to an increase in imports (6.24 p.p.) than in exports (3.56 p.p.).
  • Regarding the labor market, the unemployment rate stood at a rate of 16.13%, after decreasing by 0.13 p.p. compared to 3Q20. On the other hand, in 4Q20, the year-on-year employment variation rate stood at -3.12%, which represented a small recovery (0.39 p.p.) compared to the previous quarter.
  • Regarding the exchange rate, the euro appreciated against the dollar in 4Q20, reaching an average exchange rate of 1.19 $/€.
  • As for inflation, in 4Q20, CPI growth stood at a negative rate of -0.72%, after recording a decrease of 0.22 p.p. compared to the previous quarter.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).