Spanish real GDP grew 0.8% QoQ for the third straight quarter in Q4 2024, beating expectations of growth slowing to 0.6% QoQ. It is worth noting that a more exact measure of growth was 0.75% QoQ, so growth has slowed sequentially but to a miniscule extent. The annual increase in Spain’s GDP was 3.5% YoY, above expectations of a 3.2% YoY annual pace and above 2.7% in 2023.
Household final consumption was up 1.0% QoQ, and gross capital formation increased 2.8% QoQ. Government grew at a slower 0.4% QoQ pace. In total, domestic demand contributed 1.2 ppts to quarterly real GDP growth. External demand made a -0.4 ppts contribution as imports were up 1.3% QoQ, outpacing export growth of 0.1% QoQ. Economic weakness from its neighbors likely had a significant impact the limited export growth.
All major economic sectors made positive contributions to end the year. Industry grew 0.3% QoQ with manufacturing up 0.5% QoQ, after a slight -0.1% QoQ decline in the quarter before. Service sector growth remained strong at 0.9% QoQ, only slowing slightly from the 1.0% QoQ pace. The construction sector saw a major turnaround, surging 2.6% QoQ after a -1.6% QoQ decline in Q3.
Spanish productivity was strong in 2024. Spain saw full-time equivalent jobs increase 2.3% YoY over the course of the full year. As a result, productivity per full-time job was up 1.2% YoY in 2024. Although, in the final quarter of the year, productivity edged down -0.1% QoQ.