Tuesday, March 4, 2008

Spain GDP annual + 3.5%, fourth quarter + 0.8%

Year ending data from the National Statistics Institute (INE) showed that Spanish economic growth slowed in the fourth quarter of the year. As stats revealed by INE states that the figures on economic growth in 2007 showed a notable increase in GDP at 3.8%.

Eurostat confirmed that The Spanish economy grew more than the economies of other European countries. Spanish GDP grew at 3.8% annual rate and at a 0.7% quarterly rate in the third quarter.

GDP in fourth quarter grew at an annual rate of 3.5% and at a quarterly rate of 0.8 percent .The surprising feature of the data was that on a quarter-on-quarter basis growth accelerated to 0.8 percent in the fourth quarter of the year from 0.7 percent in the third quarter.

The INE said slowdown in the construction sector is the reason for 2.9% in the fourth quarter from 3.8% in the third quarter. Spain's external trade position improved marginally.0.4 percentage point negative contribution from GDP growth in the fourth quarter but when compared with a 0.7 percentage point contribution in the third quarter it is a improvement.

Economists feel that the current cooling of the economy was only temporary and Spain has an economic growth potential of closer to 3.5 percent rather than 3.0 percent.