Bankinter | The preliminary GDP for the year 2024 grows by 3.2% year-on-year, after announcing a Q4 2024 growth of 3.5% year-on-year that once again surprises with its strength. In quarter-on-quarter terms, the pace remains at 0.8% quarter-on-quarter since Q2, while Q1 is revised upwards to 1% (from 0.9%). Domestic Demand once again increases its contribution to growth by 3.5 percentage points year-on-year (1.2% quarter-on-quarter), where the improvement in Investment stands out.
The economy maintains its strength in Q4 2024 at 3.5% year-on-year and continues the growth trend of Domestic Demand (which contributes almost entirely), against the now almost negligible contribution from the External Sector. Within Domestic Demand, the improvement in Gross Fixed Capital Formation (3.6% year-on-year) is notable, particularly in Capital Goods (6.1% year-on-year) and Construction (3% year-on-year), which have so far been the most lagging components in the post-pandemic recovery.
In quarter-on-quarter terms, the data for Q4 2024 maintains a growth of 0.8% for the third consecutive quarter and raises Q1 by one-tenth to 1%. The External Sector no longer contributes to quarter-on-quarter growth, with stable Exports at 0.1% quarter-on-quarter, but an acceleration in Imports (1.3% quarter-on-quarter), due to the strength of Domestic Demand.
The implicit GDP deflator rises by 2.3% year-on-year, one percentage point less than the previous quarter. Productivity per full-time equivalent job increases by 1.2% year-on-year, two-tenths below the previous quarter, while Remuneration per employee grows by 4.9% year-on-year (four-tenths more than the previous quarter). Thus, Unit Labor Costs rise again to 3.7% in Q4 2024 (up from 3.1% previously). The most positive aspect is the recovery of Investment in this last quarter.