According to the quarterly GDP advance estimate, during the fourth quarter of 2007, the Gross Domestic Product (GDP) generated by the Spanish economy registered a real growth rate of 3.5%, as compared to the same period of the previous year. In this way, the Spanish economy slowed its rate of progress by three points, as a result of a slow-down in national demand, which was partially compensated by the less negative contribution of the foreign sector. Moreover, the quarter-on-quarter GDP growth rate stood at 0.8%, one tenth more than in the previous quarter. By temporary aggregation of the four quarters, real growth of GDP for the entirç year 2007 was estimated at 3.8%, one tenth less than in 2006.
But as I say, all the dials ARE steadily moving over to red in Spain now, and as if to make the point Eurostat yesterday published the December industrial output figures, which show that there is now a significant and steady slowdown taking place.
And indeed, on a month on month basis we had contraction in industrial output in both November and December. Add to this the fact that retail sales also contracted in both the same months and it isn't hard to see that there isn't a exactly a lot of life in the Spanish economy at this point, despite the apparent "acceleration".