Spain’s Q4 GDP growth reading of 0.2% q/q exceeded our forecast of a negative growth reading and lifted the annual growth rate for 2010 to -0.1%, compared with our expectation of -0.3% and the consensus expectation of -0.2%. The main growth driver was again net exports, but unlike in the previous quarter, strong export growth led the way rather than declining imports. Domestic demand continued to contract, but at a slower pace than in Q3—the negative growth contribution shrank to -0.4% from -1.4%.
Figure 1: Contributions to Quarterly GDP Growth (%)
Source: Eurostat, RGE