Press Release 20/09/2018
QUARTERLY ACCOUNTS II/2018
The GDP of the Basque Country posted a 2.9% year-on-year growth in the second quarter of 2018
Investment in capital goods led year-on-year growth with 6.1% and employment increased by 2.1%
The GDP of the Basque Country posted growth of 2.9% in the second quarter of 2018, compared to the same quarter of the previous year, according to Eustat data. With regards to the first quarter of 2018, the variation was 0.6%, two tenths lower than in the previous quarter.
The growth figures for the second quarter of 2018 were up by a tenth, in year-on-year terms, on those given in the Advance Quarterly Accounts on 27 July 2018, maintaining the quarter-on-quarter rate.
From the point of view of supply, the year-on-year growth in GDP during the second quarter of 2018 has resulted from the positive performance of all activity sectors, although the growth rate slowed for all sectors, except Primary and Construction.
The primary sector saw an upturn of 0.8% compared to the same quarter of the previous year. This figure for year-on-year performance shows growth of 6% in quarter-on-quarter terms.
The Industry sector showed a positive trend in this second quarter, with a 3.1% growth rate, although it was lower than the rate recorded in the two previous quarters. The quarter-on-quarter trend was also positive and stood at 0.1%. The overall trends in Manufacturing Industry remained the same in annual terms, at one tenth below Industry as a whole in terms of year-on-year variation.
The Construction sector showed the greatest dynamism this quarter and increased its year-on-year rate by 1.4 points with respect to the previous quarter, reaching 4.1%. The quarter-on-quarter rate was up by 2.0%.
Trends in the Services sector were positive, both in year-on-year and quarter-on-quarter terms, in all three activity subsectors, but with lower rates than in the previous quarter. As a whole, the sector had year-on-year growth of 2.8% and the quarterly rate was up 0.4%. The branch of Trade, Hotel Management & Catering and Transport grew by 2.7%, one tenth less than the total and four tenths down on the figure for the previous quarter; in turn, Other Services, which includes, amongst others, professional, finance and insurance activities, with a year-on-year growth rate of 3.0% exceeded the figure recorded for the sector as a whole, but fell by one tenth compared to the year-on-year rate posted in the first quarter of 2018; finally, the branch of Public Administration, Education, Health and Social Services grew by 2.3%, six tenths lower than the rate for the last quarter.
Quarter-on-quarter variations in the three subsectors were very similar this quarter. The branch of Trade, Hotel Management & Catering and Transport saw the lowest rate with growth of 0.3%, seven tenths lower than in the previous quarter. The branch of Public Administration, Education, Health and Social Services recorded quarter-on-quarter growth of 0.4%, 3 tenths lower than the previous quarter, and Other Services of 0.5%, seven tenths lower.
The aggregated performance by sector has given rise to a 2.9% upturn in Value Added. This figure was two tenths down on the year-on-year figures for the previous quarter. There was a 0.5% rise in the quarter-on-quarter rate.
Of note from the point of view of Demand is the solid performance for yet another quarter in Internal Demand, which grew at a rate of 3.0%, similar to the rate recorded in the first quarter of 2018. Its two components (Final Consumption Expenditure and Gross Capital Formation) both performed positively but it was Gross Capital Formation, which grew by 4.8%, that sustained its growth. Final Consumption Expenditure grew by 2.5%, three tenths less than the previous quarter.
This quarter the foreign sector reflected a higher level of growth in imports (2.4%) than exports (2.2%). The contribution of the foreign balance was negative.
Final Consumption Expenditure of Households (Private Consumption) increased at a slower rate compared to the first quarter of 2018. Growth in this quarter was 2.6%, three tenths lower than the previous quarter. The quarter-on-quarter rate was 0.6%, which was also less than in the previous quarter, by one tenth.
Public Consumption (Final Consumption Expenditure of Public Administrations) grew by 2.0% in year-on-year terms, six tenths lower than the estimated annual figure for the previous quarter.
The overall performance of the Final Consumption Expenditure of Public Administrations combined with the Final Consumption Expenditure of Households led to an upturn of 2.5% in Final Consumption Expenditure. With regards to the previous quarter there was an upturn of 0.5%.
Gross Capital Formation (Investment) registered annual growth of 4.8%, which is one point and one tenth higher than the figure recorded in the previous quarter. The quarterly rate was 1.5%. This overall performance of investment was based on the positive trends in its two components, which in both cases had higher growth than in the first quarter. Investment in capital goods performed better, with a year-on-year growth rate of 6.1%, resulting in a quarterly increase of 0.2%. The rest of Gross Capital Formation, which is more closely related to the performance of the construction sector, registered a year-on-year rate of 4.0%, one point higher than that of the previous quarter, and a quarterly rate of 2.3%.
Based on these performances, Internal Demand as a whole registered an increase 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 2.1% in year-on-year terms. This year-on-year rate means a 0.6% growth with respect to the first quarter of 2018.
Employment levels performed positively in relation to the same quarter of the previous year in all branches of activity, except for the Primary Sector, which registered a negative rate of 0.3%, although this was an improvement of one tenth on the previous quarter. The Construction sector stood out with growth of 3.4%, the highest rate since the crisis began. The Services sector maintained the rate of employment creation shown in previous quarters, with growth of 2.2%, one tenth below that of the previous quarter. Finally, Industry also maintained a positive rate, with growth of 1.8%, one tenth above that of the first quarter of 2018.
In terms of the quarter-on-quarter rate, all sectors recorded positive rates: 1.3% for the primary sector, 0.6% for industry, 1.0% for construction and 0.5% in the case of services.
Regarding the evolution of GDP by Province, in year-on-year terms Álava showed the highest growth, of 3.0%, followed by Gipuzkoa with 2.9%, while Bizkaia registered a rate of 2.8%. In quarter-on-quarter terms Álava and Gipuzkoa were up by 0.6%, and Bizkaia by 0.5%.
Methodological note: Definitive data from 2016 and advance data from 2017 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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