Slowdown in Domestic Demand and Investment in the Fourth Quarter of 2024
The High Commission for Planning (HCP) reports that domestic demand has experienced a slowdown in its growth rate, decreasing from 8.1% in the fourth quarter of 2023 to 7.6% in the fourth quarter of 2024. This shift has contributed 8.9 points to national economic growth, compared to 9.4 points the previous year.
Final consumption expenditure by households has also shown a slowdown, rising by 4.1% compared to 5.1% in the same quarter of the previous year. Their contribution to growth has decreased from 3.2 points to 2.6 points.
Public Consumption and Investment: Moderate Progression
As for final consumption expenditure by public administrations, it increased by 4.8% compared to 3% in 2023, contributing 0.9 points to growth, up from 0.6 points the previous year.
Regarding gross investment (including gross fixed capital formation, changes in inventories, and net acquisitions of valuables), a slight slowdown was observed, with an increase of 15.3% compared to 16.6% in the fourth quarter of 2023. Investment contributed 5.4 points to growth, down from 5.5 points the year before.
External Trade: A Negative Impact on Growth
External trade has also presented mixed trends. Imports of goods and services rose by 15.6% compared to 12.5% in 2023, contributing negatively to growth by 9 points, compared to 7.7 points the previous year. Conversely, exports grew by 9.2%, up from 5.5% in 2023, contributing 3.8 points to growth, compared to 2.5 points the previous year.
Consequently, the net contribution of external trade to economic growth remains negative at -5.2 points, a level similar to that observed in the fourth quarter of 2023.
