Spain GDP growth accelerates mildly in 2016

Spanish average real gross domestic product (GDP) rose 3.3 percent y/y in 2016, according to the government press release, a slightly better outturn than the 3.2 percent rate officially expected, but is yet to be confirmed by the statistical office.

However, compares favourably with an average 3.2 percent growth rate in 2015. Assuming this is the case, this suggests the country may have seen a growth rate of 0.8-0.9 percent q/q in last quarter of 2016, confirming that the economy grew at an average 0.8 percent q/q per quarter throughout 2016 - a pretty solid showing.

Spain’s economic renaissance has thus continued impressively and the country thus once again positions itself as a significant contributor to the 1.7 percent average Eurozone GDP growth that rate we expect for this year, and will likely play a key role in pushing up the region’s Q4 GDP growth rate to around 0.5 percent q/q, from 0.3 percent in the third quarter of 2016. At the margin, this is a positive development for EURUSD.