Press Release 25/05/2018
QUARTERLY ACCOUNTS I/2018
The GDP of the Basque Country registered 3.1% year-on-year growth in the first quarter of 2018
Manufacturing industry led sectoral growth, advancing 3.9% and, from the point of view of demand, investment in capital goods reached 4.8%
The GDP of the Basque Country posted growth of 3.1% in the first quarter of 2018, compared to the same quarter of the previous year, according to Eustat data. With regards to the fourth quarter of 2017, the variation was 0.8%, one tenth higher than in the previous quarter.
The growth figures for the first quarter of 2018 were the same as those obtained for the Advance Quarterly Accounts for 26 April 2018.
From the point of view of supply, the year-on-year growth in GDP during the first quarter of 2018 has resulted from the positive performance of all activity sectors, except the Primary sector. Industry grew at the same rate as in the previous quarter and Services posted a year-on-year rate higher than that of the fourth quarter of 2017, with performance in the three sub-sectors being either the same or better than in the previous quarter. Year-on-year growth in Construction was lower than in the two previous quarters.
The primary sector registered a downward trend of 5.6% compared to the same quarter of the previous year, however, in a quarter-on-quarter comparison the trend is clearly upward (5.4%).
In this first quarter, the Industry sector had a year-on-year growth rate of 3.7%, which is equal to the rate registered in the fourth quarter. This year-on-year performance figure translates into a decrease of one point in quarter-on-quarter terms. It was manufacturing industry that pulled the industrial sector, with year-on-year growth two tenths higher than the total and also two tenths above that registered in the previous quarter. The quarterly rate also performed positively, up 5 tenths.
The Construction sector continued the momentum of activity, although the total annual growth rate fell 4 tenths, standing at 2.7%. The quarter-on-quarter rate was down by 2.7%.
The Services sector showed the greatest dynamism this quarter from the point of view of supply, with positive variations in both year-on-year and quarter-on-quarter terms, and in the three activity sub-sectors. As a whole, the sector had year-on-year growth of 3.1% and the quarterly rate was up 1.8%. The values for year-on-year growth in the three sub-sectors were very close, although performance differed compared to the previous period. The branch of Trade, Hotel Management & Catering and Transport posted a similar rate of growth to the total, of 3.1%, and the same as the rate registered in the previous quarter; the Other Services sector, which includes, amongst others, professional, finance and insurance activities, also registered the same growth rate (3.1%), but improved four tenths on the year-on-year rate registered in the fourth quarter of 2017; finally, the branch of Public Administration, Education, Health and Social Services grew by 2.9%, repeating the rate registered in the last quarter.
Regarding quarter-on-quarter variation, the branch of Public Administration, Education, Health and Social Services, registered an increase of 2.4%, followed by Trade, Hotel Management & Catering and Transport, up 1.6%, and Other Services, with growth of 1.5%.
The aggregated performance by sector has given rise to a 3.1% upturn in Value Added. This figure was one tenth up on the year-on-year figures for the previous quarter. There was also a 0.8% rise in the quarter-on-quarter rate.
Of note from the point of view of Demand, is the solid positive performance in Internal Demand, which grew at a rate of 3.0%, although this figure is one tenth lower than the annual rate of the fourth quarter of 2017. Its two components (Final Consumption Expenditure and Gross Capital Formation) performed positively, with Gross Capital Formation registering an increase of 3.7% and Final Consumption Expenditure rising by 2.8%.
The foreign sector reflected a significant level of dynamism, with a higher level of growth in exports than imports. The contribution of the foreign balance was positive.
Final Consumption Expenditure of Households (Private Consumption) increased at a slightly higher rate compared to the final quarter of 2017. Growth in this quarter was 2.9%, one tenth higher than the previous quarter. The quarter-on-quarter rate was 0.5%, which was also four tenths higher than in the fourth quarter.
Public Consumption (Final Consumption Expenditure of Public Administrations) grew by 2.6% in year-on-year terms, three tenths lower than the estimated annual figure in 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 2.8% in Final Consumption Expenditure. With regards to the previous quarter there was an upturn of 1.7%.
Gross Capital Formation (Investment) registered annual growth of 3.7%, which is one tenth lower than the figure recorded in the previous quarter. The quarterly rate was also positive at 0.2%. Once again this overall performance of investment was based on two trends of different intensity. Investment in capital goods performed better, with a year-on-year growth rate of 4.8%, resulting in a quarterly increase of 2.0%. The rest of Gross Capital Formation, which is more closely related to the performance of the construction sector, posted positive results, with a year-on-year rate of 3.0%, but was down four tenths on the previous quarter.
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 2.2% in year-on-year terms. This year-on-year rate means a 0.5% growth with respect to the fourth quarter of 2017.
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 0.4%. The Construction sector stood out, with growth of 2.9%, above the rates registered throughout 2017. The Services sector maintained the rate of employment creation shown in previous quarters, with growth of 2.3%, one tenth above that of the previous quarter. Finally, Industry also maintained a positive rate, with growth of 1.6%, similar to that of the fourth quarter.
The quarter-on-quarter rates for the primary sector, industry and services were up by 0.2%, 0.3% and 0.7%, respectively, whereas they were down by 1.6% in construction.
Regarding the evolution of GDP by Province, in year-on-year terms, Gipuzkoa showed the highest growth, of 3.4%, followed by Álava with 3.3%, while Bizkaia registered a rate of 2.9%. In quarter-on-quarter terms Álava and Gipuzkoa were up by 0.7% and Bizkaia by 0.8%.
For further information:
Eustat - Euskal Estatistika Erakundea / Basque Statistics Institute
C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz
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