Spain | GDP grew 0.5% QoQ in 4Q19, and finished 2019 with an annual increase of 2.0%.

The economy grew 0.5% QoQ (1.8% YoY) in Q4. According to the flash estimate of the INE, the internal demand drained growth (-0.4pp QoQ; 1.2pp YoY), dragged by consumption and investment. On the contrary, the external one added up again (0.9pp QoQ; 0.6pp YoY), thanks to exports. In 2019, GDP grew by 2.0% (2.4% in 2018).

Key points

• Key points:
• Growth marginally improved up to 0.5% QoQ in the fourth quarter
• Domestic demand loses traction, while external demand recovers
• Demand components were again more volatile than expected
• Employment rebounded strongly, but productivity declined
• Real unit labor costs continue to grow

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