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Macroeconomic outlook report: Spain

Fourth quarter of 2017

During the fourth quarter of 2017, Spanish GDP maintained its year-over-year growth rate constant when compared to the previous quarter, at 3.06%. This behavior was explained by the acceleration of domestic demand, offset by the slowdown in exports. The unemployment rate increased by 0.17 p.p. to 16.55%, while the year-on-year employment growth rate decelerated by 0.13 p.p., reaching 2.57%. With respect to the exchange rate, the euro recorded a slight appreciation against the dollar, standing at 1.18 $/€ in the fourth quarter of the year.

Macroeconomic overview

  • During the fourth quarter of the year, the year-over-year growth rate of the Spanish economy stood at the same level as 3Q17, registering a growth of 3.06%. This behavior was mainly due to the y/y growth of domestic demand, which accelerated 0.47 p.p. when compared to the third quarter of 2017, growing at a 3.19% rate, offset by the greater deceleration of exports than imports.
  • National demand growth was driven by private consumption, which increased its y/y variation in 0.24 p.p. in 4Q17, reaching 2.63%, despite the deceleration in the growth of investments.
  • The unemployment rate stood at 16.55% at the end of the fourth quarter, after increasing by 0.17 p.p. when compared to the previous quarter. The y/y growth rate of employment stood at 2.57% after decelerating by 0.13 p.p.
  • The euro recorded a slight appreciation against the dollar, with the exchange rate standing at 1.18 $/€ in 4Q17, which means an increase of 0.01 $/€ when compared to 3Q17. This appreciation of the euro against the dollar is explained by the good growth prospects of the European economies, as well as the uncertainty about the US fiscal policy.
  • The Spanish Consumer Price Index growth decelerated in the fourth quarter of 2017 by 0.16 p.p., to a rate of 1.47%, mainly due to the reduction in the prices of energy products.

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

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.