Press Release 20/09/2019
QUARTERLY ACCOUNTS II/2019
The GDP of the Basque Country registered 2.2% year-on-year growth in the second quarter of 2019
Employment increased by 1.7% in year-on-year terms and with growth in all branches of activity
The GDP of the Basque Country posted growth of 2.2% in the second quarter of 2019, compared to the same quarter of the previous year, according to Eustat data. With regards to the first quarter of 2019, the variation was estimated at 0.6%. Both growth rates were identical to those estimated for the previous quarter.
Growth rates in the second quarter of 2019 confirmed the evolution estimated in the Advance Accounts from 30 July, although the year-on-year GDP rate was one tenth less.
From the point of view of supply, the year-on-year growth in GDP during the second quarter of 2019 has resulted from the positive evolution of all activity sectors except the Primary sector, in particular the Services and Construction sectors. For the third consecutive quarter, the Industry sector showed more moderate growth.
The primary sector registered a downward trend, with a reduction of value added of 0.1% compared to the same quarter of the previous year. In relation to the previous quarter, however, the trend is positive, with quarter-on quarter growth of 2.5%.
In this second quarter the Industry sector registered a year-on-year growth rate of 0.8%, slightly higher than the rates observed in the two previous quarters, although below the evolution estimated in the last five years. In quarter-on-quarter terms this growth meant a rate of 0.6%. Manufacturing industry performance stood one tenth below industry as a whole in both year-on-year and quarter-on-quarter terms.
The Construction sector showed less dynamism than in previous quarters, although it grew 2.9% in relation to the same quarter of the previous year. Quarter-on-quarter growth was estimated at 0.2%.
As regards the evolution of the Services sector, there was continued growth in the three activity subsectors. As a whole the sector grew by 2.6% with respect to the second quarter of 2018 and by 0.5% compared to the first quarter of 2019. The Trade, Hotel Management & Catering and Transport branch was the least dynamic, given that the growth seen this quarter was slightly lower than that observed in previous quarters. The branch grew by 2.5% in year-on-year terms and by 0.5% in quarter-on-quarter terms. In contrast, the Other Services branch, which includes professional activities, finance and insurance, among others, improved on the evolution observed in recent periods and with increased year-on-year rates. Year-on-year growth was estimated at 2.9%, which translates as a 0.6% variation in respect of the first quarter of 2019. Finally, the branch of Public Administration, Education, Health and Social Services maintained the continuous growth profile registered in previous periods, with year-on-year growth of 2.3% and quarter-on-quarter growth of 0.6%.
The aggregated performance by sector has given rise to an upturn in Value Added of 2.2%, higher than in the same quarter of the previous year and 0.6% above that estimated in the first quarter of the year.
From the point of view of Demand, of note this quarter was the positive contribution of the external sector to GDP growth in year-on-year terms. This was due to the fact that year-on-year growth of Internal Demand (2.0%) was lower than year-on-year growth of GDP (2.2%), largely due to the weak performance of Gross Capital Formation. Both exports and imports performed positively, although exports grew at a higher rate than imports (2.8% and 2.6%, respectively).
The year-on-year growth profile of Final Consumption Expenditure of Households (Private Consumption) diminished slightly with a variation rate of 1.9% (compared to the 2.2% observed in the first quarter of 2019). In quarter-on-quarter terms growth was 0.3%, one tenth less than the growth registered in the previous quarter.
Public Consumption (Final Consumption Expenditure of Public Administrations) maintained a more dynamic profile, with a growth rate of 2.0%, for the second consecutive quarter, above the values observed throughout 2018. In quarter-on-quarter terms, the variation rate was estimated at 0.3%.
The overall performance of the Final Consumption Expenditure of Public Administrations combined with the Final Consumption Expenditure of Households led to an upturn of 1.9% in Final Consumption Expenditure. With regards to the previous quarter, this implies an upturn of 0.3%.
There was a deceleration in Gross Capital Formation (Investment) in the second quarter of 2019, with a year-on-year growth rate of 2.5%, below that observed in previous quarters. In fact, in relation to the first quarter of the year it suffered a drop of 0.3%. This trend occurred in both investment in Capital Goods and in Other Gross Capital Formation (more closely related to trends in the construction sector). Investments in Capital Goods registered year-on-year growth of 2.2% (growth in the previous quarter was 3.3%) and Other Investment was up 2.6% (compared to the 4.4% estimated in the first quarter of 2019). These more modest year-on-year growth figures meant quarter-on-quarter downturns of 0.4% and 0.2%, respectively.
In relation to the level of employment (measured in Full-Time Equivalent Jobs), the year-on-year rate for employment as a whole was up 1.7% (one tenth less than in the first quarter) and 0.5% in quarter-on-quarter terms (two tenths more than the growth registered in the first quarter).
Employment levels performed positively in both year-on-year and quarter-on-quarter terms in all branches of activity. In year-on-year terms, there was growth of 1.1% in the Primary sector (slightly lower than the 1.5% observed in the previous quarter), 0.9% in Industry (identical to the previous quarter), 3.3% in the Construction sector (6 tenths less than in the first quarter of the year) and 1.8% in the Services sector as a whole (compared to the 2.0% estimated in the previous quarter). Jobs were created in all sectors with respect to the first quarter of the year, with positive quarter-on-quarter rates of 0.5% in the Primary sector, 0.4% in Industry, 1.1% in Construction and 0.5% in the Services sector.
Regarding the evolution of GDP by Province, in year-on-year terms Gipuzkoa showed the highest estimated year-on-year growth, with a rate of 2.5%, followed by Bizkaia with year-on-year growth of 2.1%. The lowest growth was in Álava, with a GDP in the second quarter of 2019 1.8% higher than in the second quarter of 2018. In relation to the first quarter of 2019, there was growth of 0.7% in Gipuzkoa, 0.6% in Bizkaia and 0.5% in Álava.
Methodological note: Definitive data from 2017 and advance data from 2018 from the Economic Accounts of the Basque Country have been incorporated into the Quarterly Accounts by Eustat, which has meant re-estimating the quarterly series.
For further information:
Eustat - Euskal Estatistika Erakundea / Basque Statistics Institute
C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz
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