Spain | Quarterly National Accounts 4Q14

As advanced in the latest edition of our Spain Economic Outlook, the pace of recovery in the Spanish economy accelerated at the end of 2014. GDP growth for 4Q14 (+0.7% QoQ) is consistent with the BBVA Research scenario, which forecasted a rate of 1.4% for 2014 as a whole and 2.7% in 2015. Overall, the published data are positive inasmuch as it shows positive growth of all private domestic demand components and a drop in public consumption. Despite the GDP growth breakdown confirms the slowdown of exports this comes as no surprise due to the pick-ups registered up to 3Q14 and the moderate expanson of european activity. Employment grows at the same pace of activity, leading to a stagnation of productivity. The foregoing did not offset the adjustment of real wages, leading to a real increase in unit labor costs.

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