Spain | Quarterly GDP growth increased by 0.5% in 2Q19, confirming a slowdown

The Spanish economy decelerated by 0.2pp to 0.5% QoQ (2.3% YoY) in Q2. Domestic demand explained the moderation in growth (0.2pp QoQ; 1.6pp YoY) due to the unexpected slowdown in consumption and investment. The contribution of external demand increased (0.3pp QoQ; 0.7pp YoY)

Key points

• Key points:
• GDP growth slowed somewhat more than expected in the second quarter
• External demand leads activity in the short term, while domestic demand slows down
• Most of the demand items behaved worse than expected
• Employment increased and productivity remains stagnant, while real unit labour costs continue to grow

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