Growth in 2024 revised to 1.7%
GDP advanced 0,8% qoq and 1,5% yoy in the Q1 24, benefiting from the contribution of external demand. This added 1 percentage point (p.p.) to quarterly growth, with exports growing by 1.6%, while imports contracted by 0.6%. Domestic demand reduced quarterly growth by 0.1 p.p., due to the 3% fall in GFCF and the negative contribution (-0.2 p.p.) from inventories, maybe due to the postponement of investment decisions associated with uncertainty related to early elections in March 2024. Q1 data and the prospect that in 2024 activity will follow a trend from less to more, led us to revise upwards the forecast for growth in 2024 from 1.6% to 1.7%. Annual growth is driven by domestic demand, as private consumption continues to be supported by a resilient labour market, and by investment, which is likely to be stimulated by the implementation of European funds. Risks to our current forecast are balanced, but with a positive bias.