The fourth-quarter GDP growth has exceeded expectations, showcasing a notable 0.6% increase according to preliminary figures. When coupled with revisions to previous quarter results (some upward and others downward), the overall growth for 2023 stands at 2.5%.
The quarterly growth was primarily driven by inventory accumulation, contributing four-tenths of growth, and public sector consumption. Private consumption growth was moderate at 0.3%, and gross fixed capital formation—the weakest variable in the post-pandemic period—experienced another decline. The contribution from the external sector was also modest, amounting to 0.2 percentage points.
On the supply side, industrial activity’s growth was a positive highlight, but the largest contribution to growth came from the Public Administration, Health, and Education sector. However, the rest of the services, when considered together, saw a decline in their value-added at the end of the fourth quarter.
Looking at the results for the entirety of 2023, the demand component that saw the most growth was public sector consumption, reaching 3.8%, a rate even higher than that recorded in 2020. Private consumption increased by 1.8%, construction investment by 2.2%, and equipment investment experienced a decline of 1.6%. The external sector contributed 0.8 percentage points to the growth rate, originating from net exports of both tourist and non-tourist services.
From the supply side perspective, annual figures also reflect the significant role of the public sector in growth—its value-added grew by 3.1%. However, the rest of the services contributed the most, with a rise of 3.2%. The positive evolution of manufacturing activity, growing by 3.3%, and a 1.9% advancement in construction, stand out prominently.
Regarding employment, in 2023, the number of employed individuals increased more than the number of hours worked. This resulted in a 0.7% reduction in productivity per employed person, while productivity per hour worked increased by 0.6%. Compared to 2019 levels, productivity per employed person was 1.3% lower, and productivity per hour worked was 1.4% higher.
Spain’s GDP growth contrasts with the Eurozone’s results, where GDP showed zero growth in the fourth quarter and 0.5% growth for the entire year. When comparing the 2023 GDP with that of 2019, the Eurozone is 3.2% ahead—excluding Ireland, the increase is 2.4%—compared to Spain’s 2.5%. However, the composition of this growth is markedly different. Spain, compared to the Eurozone, has seen a significant role in growth played by public sector consumption, standing 11% above pre-pandemic levels, along with the external sector. In contrast, private consumption is roughly at the same level as in 2019, and investment is below, unlike the Eurozone, where both variables surpass previous values.