GDP, consumption and investment
2014 ended with a growth in GDP of 1.4% and an increase of 2% year-on-year in the fourth quarter. The acceleration is based on the recovery in consumption and investment.
Private consumption grew 0.9% in the fourth quarter, reaching a year-on-year growth of 3.1%. By contrast, public spending, with nine straight months of decline, dropped by 1% in the last quarter of the year.
Total investment increased 1.4% between October and December, in the following ways:
- Investment in capital goods: 1.9% (10.3% year-on-year).
- Investment in construction: 1.4%, for three consecutive periods of growth.
The most recent report from the Cotec Foundation about the Spanish research and development sector in 2013 reveals a drop of total investment in R&D, both public (-5.7%) and private (-1.5%). For the first time, private financing of R&D is greater than that in the public sector.
Between 2008 and 2013, the accumulated reduction was:
With regard to R&D spending, it dropped 2.8% (by -3% in the public sector and -2.7% in the companies), finishing at 1.24% of GDP, below the European target of 2% for 2020.