Press Release 23/02/2017
The GDP of the Basque Country grew by 3.1% in 2016, two tenths more than the previous year
The fourth quarter of 2016 registered a quarter-on-quarter increase of 0.6%, with year-on-year growth also up by 2.9%
The GDP of the Basque Country posted growth of 2.9% in the fourth quarter of 2016, compared to the same quarter of the previous year, according to Eustat data. With regards to the third quarter of 2016, the variation was 0.6%, identical to that of the previous quarter. With these data, the yearly balance for 2016 closed with an increase in Basque GDP of 3.1% compared to the previous year, an increase of two tenths over 2015.
The growth figures for both the fourth quarter of 2016 and the yearly balance for 2016 were the same as those obtained for the Advance Quarterly Accounts for 27 January 2017.
From the point of view of supply, the year-on-year growth in GDP during the fourth quarter of 2016 is due to the positive performance of all activity sectors, except the Primary sector. Industry was slightly up on the previous quarter, with Construction and Services matching the performance of the previous period, though performances were varied across all services sub-sectors.
In this fourth quarter, the Industry sector had a year-on-year growth rate of 3.0%, which was one percentage point higher than in the third quarter. This figure for the year-on-year performance shows a growth of eight tenths in quarter-on-quarter terms. The annual growth rate for this quarter is a result of the 3.3% increase in the Manufacturing Industry.
In the Construction sector the annual growth rate (1.9%) registered in the previous quarter was maintained. A quarter-on-quarter growth rate of 4.6% was registered.
Global activity within the Services sector recorded positive variations in both year-on-year terms and quarter-on-quarter terms: 3.1% and 0.3% respectively. The year-on-year growth of 3.1% in Services is the result of the positive performances of the sub-sectors, though to different extents: the Trade, Hotel Management & Catering and Transport branch grew at a rate of 3.5%, the highest of all sub-sectors. This was followed by the Other Services sector, which includes, amongst others, professional, finance and insurance activities, which posted an increase of 3.0%, with the Public Administration, Education, Health and Social Servicescoming in last place with an increase of 2.7%.
Regarding quarter-on-quarter variation, the above-mentioned order was maintained, with the Trade, Hotel Management & Catering and Transport sector posting an increase of 1.5%. This was followed by Other Services which grew at a rate of 0.5%, with the Public Administration, Education, Health and Social Services branch registering a negative quarter-on-quarter growth rate of 1.6%.
The aggregated performance by sector has given rise to a 2.9% upturn in Added Value. This figure was one tenth down on the year-on-year figures for the previous quarter. There was also a 0.6% rise in the quarter-on-quarter rate.
From the viewpoint of Demand, the most important detail in year-on-year terms is the maintenance of the positive performance in Internal Demand, in addition to even stronger growth (3.0%) than the previous quarter (2.7%). Its two components (Final Consumption Expenditure and Gross Capital Formation) performed positively, with Gross Capital Formation registering an increase of 3.2% and Final Consumption Expenditure rising by 2.9%.
On the other hand, the external sector performance was more measured, with exports growing by 0.3%, compared to 0.4% for imports.
Final Consumption Expenditure of Households (Private Consumption) once again revalidates the positive performances recorded in each quarter of 2016, albeit with a slowdown towards the end of the year. Growth in this quarter was 2.9%, two tenths lower than the previous quarter. The quarter-on-quarter rate was 0.2%, which was also one tenth lower than the third quarter.
Public Consumption (Final Consumption Expenditure of Public Administrations) grew by 3.0% in year-on-year terms, two point two percent higher than the estimated annual figure for the previous quarter, representing a quarter-on-quarter growth rate of 1.0%.
The overall performance of the Final Consumption Expenditure of Public Administrations combined with the Final Consumption Expenditure of Households led to an upturn of 2.9% in Final Consumption Expenditure. With regards to the previous quarter there was an upturn of 0.3%.
Gross Capital Formation (Investment) registered growth of more than 3.0% for all quarters of 2016, reaching the yearly rate of 3.3% in the fourth quarter. The quarterly rate was also positive at 1.9%. Once again this overall performance of investment was based on two trends of different intensity. The variation of investment in capital goods showed a positive trend, with a year-on-year growth rate of 6.6%, resulting in a quarterly increase of 0.4%. On the other hand, the rest of Gross Capital Formation, which is more closely related to the performance of the construction sector, registered a more modest rise, increasing by 1.6% in yearly terms, representing a 2.6% positive increase in the quarter-on-quarter rate.
Internal Demand, composed of Final Consumption Expenditure and Gross Capital Formation, posted a positive variation in year-on-year terms of 3.0%.
As regards the level of employment (measured in Full-Time Equivalent Jobs), there was an overall increase in the level of employment of 1.9% in year-on-year terms, a rate that has remained relatively stable throughout 2016. This year-on-year rate means a 0.8% growth with respect to the third quarter of 2016.
Employment levels performed positively in relation to the same quarter of the previous year in all sectors of activity. The Services sector, which stands out for its total volume, registered a year-on year increase of 1.9%, a figure which was matched by the industrial sector. There was a 3.8% rise in the year-on-year rate in the Primary sector, though its absolute figures were considerably more moderate. There was also significant growth in the Construction sector (0.5%).
There were positive performances in all branches of activity, quarter-on-quarter, notably in the Construction and Services sectors, which registered increases of 3.4% and 0.7%, respectively. Industry was up by 0.2% and the Primary sector by 0.1%.
Regarding variation in GDP by Province, Álava and Bizkaia showed the largest growth in year-on-year terms, at 3.0% in both cases, while Gipuzkoa grew by 2.8%. In quarter-on-quarter terms Álava was up by 0.2%, Bizkaia by 0.8% and Gipuzkoa by 0.5%.
BALANCE FOR 2016
The GDP of the Basque Country economy grew by 3.1% over the course of 2016, two tenths more than in 2015 and almost double that of 2014 (1.6%). In terms of supply, the four large activity sectors posted positive performances, with the 3.3% rise in the Industrial sector particularly standing out; the Services sector came a close second, registering an increase of 3.2% for the year as a whole. Both the Construction and Primary sectors registered positive variations of 1.6%.
The global performance of the Industrial Sector is the result of an increase of 3.5% in the Manufacturing Industry. All three sub-sectors within the Services sector showed a positive performance. Trade, Hotel Management & Catering and Transport was the most dynamic of the three, posting a growth rate of 3.6%. The Other Services sector was in second place with an increase of 3.3%. Finally, the Public Administration, Education, Health and Social Services sector exhibited a much more moderate performance, posting an increase of 2.4%.
The analysis in terms of Demand showed a growth in Internal Demand of 3.0% which, together with a year-on-year growth of 3.1% in GDP, means a positive contribution from the foreign balance for 2016 as a whole.
The positive growth in Internal Demand throughout 2016 was based on a 3.0% growth in Final Consumption Expenditure, with positive postings in both Final Consumption Expenditure of Households (3.1%) and Final Consumption Expenditure of the Public Administrations (2.2%). The growth in Gross Capital Formation was also positive (3.3%), five tenths higher than in 2015. Gross Capital Formation exhibited two trends of differing intensity, as in the four quarters of the year, whereas Capital Goods posted positive growth (7.5%), and the rest of Gross Capital Formation, which is more closely related to construction sector, registered a more moderate performance (1.4%).
Variation in employment, measured in full-time equivalent jobs, was positive, with an estimated growth of 1.9% as an average of 2016. Within employment, the Services sector performed best, with an increase of 2.1%, compared with the average for 2015. The 1.6% growth in the Industrial sector is also noteworthy, followed by the Primary sector (1.0%). In Construction, employment rates held at their 2015 average levels, with no jobs shed for the first time since 2008.
The trend in GDP by Province for 2016 was positive in the three provinces: Álava was up by 3.3%, Bizkaia by 3.1% and Gipuzkoa by 3.0%.
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
More press releases on the quarterly accounts of the Basque Country (CET)
Quarterly accounts of the Basque Country. Databank (CET)