Press Release 12/09/2012
The GDP of the Basque Country registered 0.9% year-on-year fall in the first quarter of 2012
The variation was also negative (-0.4%) with respect to the previous quarter
The GDP of the Basque Country experienced a 0.9% year-on-year decrease in the second quarter of 2012, according to data provided by Eustat. In the case of the Spanish economy this rate was -1.3%, according to data published by the National Statistics Institute (INE).
Compared to the previous quarter, GDP growth of the Basque Country registered a 0.4% drop in this second quarter, the third consecutive quarter-on-quarter decrease. This variation coincides with that registered by the Spanish economy, as well as the downward trend observed in recent quarters.
From the point of view of supply, the GDP year-on-year downturn is due to poor performance in the Industry and Construction sectors and, to a lesser extent, in Market Services. Net Taxes on Products also suffered a moderate contraction with respect to the second quarter of 2011.
On the other hand, Non-market Services, and the Primary sector in particular, showed a positive year-on-year evolution.
The Primary sector registered a positive evolution in terms of year-on-year growth (12.6%) and quarter-on-quarter growth (1.7%).
The Industry sector showed negative performance in terms of year-on-year growth (-2.6%) for the third consecutive quarter. Added value in industry continued the quarter-on-quarter downward trend for the fourth consecutive quarter, with a 0.2% drop.
Year-on-year contraction in the Construction sector was more pronounced in this quarter, with a 6.2% drop. The sector's added value also suffered a decrease with respect to the preceding quarter, although less than the drop observed in the quarter before (-2.4% compared to -3.8%).
Activity in the Market Services sector decreased slightly in year-on-year and quarter-on-quarter terms, with negative variations of -0.1% in each. This performance highlights the deceleration observed in previous quarters.
On the other hand, the Non-market Services sector increased its added value in year-on-year (0.4%) and quarter-on-quarter (2.0%) terms.
Overall, the Services sector obtained the same added value in this second quarter as in the second quarter of 2011 (0.0% year-on-year variation rate) and somewhat higher than the added value for the previous quarter (0.2% quarter-on-quarter variation rate).
The aggregated sectoral performance has given rise to a negative evolution of Added Value in year-on-year terms of -1.0%, the second consecutive negative year-on-year rate. The contraction also showed in quarter-on-quarter terms, with a negative rate of -0.4%. This is the fourth consecutive quarter with negative quarter-on-quarter variation rates.
From the point of view of Demand, as in previous quarters, the foreign trade sector contributed positively to GDP growth, despite there being drops in both import and export levels, with negative variation rates in year-on-year and quarter-on-quarter terms.
Household Final Consumption Expenditure (Private Consumption), continuing the deceleration trend observed in previous quarters, showed a 1.4% decrease compared to the same quarter in the preceding year. Quarter-on-quarter deceleration was 0.8%, significantly higher than that observed in the first quarter (0.2%). This is the fourth consecutive quarter with quarter-on-quarter decreases in Household Final Consumption Expenditure.
Public Administration Final Consumption Expenditure (Public Consumption) also showed a negative performance in year-on-year (-2.4%) and quarter-on-quarter (-1.3%) terms.
The negative year-on-year variation rates in both Private and Public Consumption generated a 1.6% decrease in Final Consumption Expenditure (the sum of Household Final Consumption Expenditure and Public Administration Final Consumption Expenditure). It also dropped by 1.0% with respect to the preceding quarter.
The fall in Gross Capital Formation (Investment) was again more pronounced, with a 4.6% year-on-year drop following the 4.2% drop observed in the preceding quarter. Gross Capital Formation dropped 1.3% in quarter-on-quarter terms, making five consecutive quarters with a negative quarter-on-quarter trend. The unfavourable evolution of Investment in Equipment Goods and especially in Construction was behind the negative evolution.
Internal Demand, composed of Final Consumption Expenditure and Gross Capital Formation, suffered a substantial contraction in the second quarter of the year. There was a 2.3% drop in year-on-year terms in this quarter (the third consecutive negative value).
The Foreign Trade sector's contribution to the evolution of GDP was positive, as in previous quarters, although a slight contraction was observed in foreign trade. This new positive contribution from the foreign trade balance occurred with a year-on-year fall in exports (0.1% contraction), with the drop being even more pronounced in imports (2.1%). The drop in imports was also more pronounced in quarter-on-quarter terms (a 4.5% fall in imports as opposed to 2.3% in exports).
The year-on-year and quarter-on-quarter drop in GDP has caused a new decrease in the level of employment, measured in Jobs, which was quantified in a year-on-year fall of 2.3%. In quarter-on-quarter terms, the fall was 0.5%. We have to go back to the second quarter of 2008 to find year-on-year growth in employment.
There was a year-on-year and quarter-on-quarter loss of Jobs in every productive sector except for the Primary sector. The year-on-year downward trend in Industry accelerated, dropping 4.3% with regards to the second quarter of 2011. The evolution in quarter-on-quarter terms also continued to be negative, with a variation rate of -1.3%. Employment in the Construction sector showed a similar trend as in Industry, but with more pronounced variations. The decrease in the number of jobs was 12.1% compared to the same quarter of the previous year. The loss of jobs was 2.6% with regards to the first quarter. There was a decrease in the Services sector for the second consecutive year, with a year-on-year drop of 0.7%. There was also a contraction in quarter-on-quarter terms, with a 0.1% drop compared to the preceding quarter. The only sector where the number of Jobs increased was the Primary sector, with a year-on-year rate of 3.2% and a quarter-on-quarter rate of 2.4%.
The evolution of GDP by Provinces shows slight differences in year-on-year terms. The greatest year-on-year drop was in Bizkaia, with a drop of 1.1%. The drop in Gipuzkoa was 0.9%, whereas in Álava the downturn was 0.5%. However, the performance was more uniform in quarter-on-quarter terms, with a drop of 0.3% in Álava, 0.4% in Bizkaia and 0.5% in Gipuzkoa.
For further information:
Basque Statistics Office
C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz
Tel: +34-945-01 75 00 Fax:+34-945-01 75 01 E-mail: firstname.lastname@example.org
Contact: Javier Aramburu
Tel:+34-945-01 75 80 Fax:+34-945-01 75 01
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