Macroeconomic outlook report: Spain

During the first quarter of 2022, the year-on-year rate of change of Spanish GDP stood at 6.41%, registering an improvement compared to the previous quarter. As for the labour market, the percentage of unemployed in the labour force registered an increase compared to the previous quarter, rising to a rate of 13.65%. On the other hand, employment registered a rate of variation of 4.57%, after registering a slight acceleration compared to 4Q21. Inflation grew to a year-on-year rate of 7.83%. Finally, with respect to the exchange rate, the euro depreciated against the dollar in 1Q22, with an average exchange rate of 1.12 $/€.

Macroeconomic outlook report: Spain 1Q22

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Macroeconomic overview

• In 1Q22, the Spanish economy registered a positive year-on-year variation of 6.41%, which meant an improvement of 0.87 p.p. compared to 4Q21. This result was explained by the fact that economic activity continued to recover in the first half of the quarter, at a pace that was moderated by the upturn in inflation and by the maintenance of certain restrictions in the face of the pandemic.
• Domestic demand declined by 0.48 p.p. compared to the previous quarter, standing at a year-on-year rate of change of 3.30%.
• Regarding the labour market, the percentage of unemployed in the active population increased in the first quarter of the year, up to 13.65%, which meant an acceleration of 0.32 p.p. compared to 4Q21. On the other hand, in 1Q22, the year-on-year variation in employment stood at 4.57%, which represented a slight rise (0.22 p.p.) compared to the previous quarter.
• Regarding the exchange rate, the euro depreciated against the dollar in 1Q22, standing at an average exchange rate of 1.12 $/€.
• As for inflation, in 1Q22, CPI growth stood at a rate of 7.83%, after registering an increase compared to the previous quarter of 2.03 p.p.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).