Press Release 17/09/2015
The GDP of the Basque Country posted a 2.7% year-on-year growth in the second quarter of 2015
Growth was 1.0% compared to the previous quarter
The GDP of the Basque Country saw growth of 2.7% in the second quarter of 2015 with respect to the same quarter of the previous year, according to Eustat data. This is equivalent to an increase of five tenths on the growth registered in the preceding quarter. With regards to the previous quarter, the variation was 1.0%. This data shows an improvement of one tenth on the annual rate, and two tenths on the quarterly rate provided in the Advance Accounts for 29 July.
The growth in the Basque economy in the second quarter was equal to that posted for the Spanish economy in terms of quarter-on-quarter rates, but it was four tenths lower in year-on-year terms, at 1.2 percentage points higher than the growth of the Eurozone-19 (+1.5%).
From the point of view of supply, the year-on-year growth in GDP is due to the positive performance of all activity sectors, except the primary sector, which has shrunk by 20.1%. Industry, on the other hand, increased its rate of growth compared with the first quarter of 2015. The construction sector's rate of growth slowed down again. The services sector as a whole showed the greatest dynamism, with an increased year-on-year growth rate which was also higher than that seen in the previous quarter. This fact is most noticeable in Other Services, which includes professional activities, finance and insurance, among others.
In more detail, the Industry sector posted, in this quarter, a year-on-year growth rate of 3.1%, which is two points and six tenths higher than that of the first quarter. This year-on-year growth equates to a growth rate of 3.0% compared with the previous quarter. The Manufacturing Industry grew at a rate one tenth higher (3.2%), with a positive quarter-on-quarter rate of 1.8%.
The Construction sector's growth rate, and after an estimated year-on-year growth of 0.6% for the first quarter of 2015, has slowed down again, standing at 0.2% for the second quarter. This four tenths lower year-on-year growth shows a decrease in the activity level of 2.8% compared with the previous quarter.
Global activity within the Services sector recorded positive variations in both year-on-year terms and quarter-on-quarter terms: 3.1% and 0.8% respectively.
The 3.1% year-on-year growth of Services follows positive performances in all sub-sectors. Both the Trade, Hotel Management & Catering and Transport branch and the Other Services branch - which encompasses professional activities, finance and insurance, among other activities - showed the greatest rate of growth (3.3%). The former improved its annual rate for the first quarter by one tenth, while Other Services improved by three tenths. The Public Administration, Education, Health and Social Services branch posted a positive annual rate of 2.3%, three tenths lower than the previous quarter.
Regarding quarter-on-quarter variation, all sub-sectors posted positive growth rates, with services linked to Public Administration, Education, Health and Social Services posting the highest quarter-on-quarter growth rate, at 1.3%. The branches of both Trade, Hotel Management & Catering and Transport and Other Services also posted positive rates, of 0.3% and 0.8% respectively.
The aggregated performance by sector has led to a rise in Added Value of 2.7% in year-on-year terms, maintaining the positive balance registered in the first quarter of 2014. This is an improvement of six tenths over the year-on-year figure of the previous quarter. There was also a 1.0% rise in the quarter-on-quarter rate for this quarter.
From the point of view of Demand, the positive growth rates of Internal Demand were consolidated with growth of 2.7% in year-on-year terms, an increase of six tenths on the previous quarter. Furthermore, this positive performance is reflected in its two components, Final Consumption Expenditure and Gross Capital Formation. With regards to the external sector, it is important to note that there have been similar growth rates in the levels of exports and imports.
The annual growth rate of Household Final Consumption Expenditure (Private Consumption) continued to accelerate, as it did throughout 2014. Growth in this quarter was 3.3%, four tenths higher than the previous quarter, making the quarter-on-quarter rate 1.7%.
Public Consumption (Final Consumption Expenditure of Public Administrations) grew by 1.1% in year-on-year terms (nine tenths more than in the previous quarter), which means a decrease of 3.9% in the quarter-on-quarter rate.
The overall performance of the Final Consumption Expenditure of Public Administrations combined with the Final Consumption Expenditure of Households led to a upturn of 2.9% in Final Consumption Expenditure. With regards to the previous quarter there was an upturn of 0.5%.
Gross Capital Formation (Investment) grew at a positive year-on-year rate of 1.8%, five tenths more than that registered in the previous quarter. The quarter-on-quarter growth rate stood at 0.8%. Once again this overall performance of investment was based on two trends of different intensity. The variation of investment in capital goods showed a more positive trend, with a year-on-year growth rate of 5.9%, which equates to a quarterly increase of 4.1%. The rest of Gross Capital Formation, which is more closely related to the performance of the construction sector, posted no change in the year-on-year growth rate (0.0%), but a decrease of 0.6% in the quarter-on-quarter rate.
As regards the level of employment (measured in Full-Time Equivalent Jobs), there was an overall increase in the level of employment of 1.7% in year-on-year terms, which was the fifth consecutive rise. This year-on-year rate means a 0.7% growth with respect to the first quarter of 2015.
Once again, variation in the level of employment with respect to the same quarter of the previous year was positive in the primary and services sectors, and negative in Industry and Construction. The Services sector stands out for its total volume of employment, whose annual rate grew by 2.5%. The Primary sector also grew at a rate of 0.8%. The year-on-year decreases occurred in Industry, with 0.3%, and Construction, with 0.2%.
In terms of the quarter-on-quarter rate, three of the four major sectors posted positive rates. The primary sector posted growth, of 6.8%, as did the services sector (0.8%). It is worth noting that the industrial sector's quarter-on-quarter rate grew by 0.3%. On the other hand, construction posted a negative rate of 0.2%.
Regarding variation in GDP by Province, Álava and Gipuzkoa showed the largest growth in year-on-year terms, at 2.8%, while Bizkaia grew by 2.7%.
In quarter-on-quarter terms Álava and Bizkaia were up by 1.1%, and Gipuzkoa by 0.9%.
Methodological note: Eustat has included the definitive data for 2013 and the advance data for 2014 from the Economic Accounts of the Basque Country in the Quarterly Accounts, which has meant re-estimating the quarterly series.
For further information:
Eustat - Euskal Estatistika Erakundea / Instituto Vasco de Estadística
C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz
Press Service: email@example.com Tlf: 945 01 75 62
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