Gross Domestic Product (GDP) in real terms registered a year-on-year reduction of 5.4% in the first quarter of 2021 (rate of change of -6.1% in the previous quarter), reflecting the effects of the general confinement earlier this year due to the deterioration of the COVID-19 pandemic. In the first quarter 2021, the contribution of domestic demand to the year-on-year rate of change of GDP was more negative than that observed in the previous quarter, shifting from -2.4 to -3.4 percentage points, mainly due to the more intense reduction of private consumption (year-on-year rates of change of -4.6% and -6.9%, in the fourth quarter of 2020 and first quarter of 2021, respectively). On the contrary, investment registered a higher growth (3.5%) than in the previous quarter (0.8%).
Net external demand presented a less pronounced negative contribution (-2.0 percentage points) than in the fourth quarter (-3.7 percentage points), although Exports of Goods and Services continued to diminish more significantly (-9.4%) than Imports of Goods and Services (-4.5%), with particular emphasis on the severe reduction of non-resident tourism.
Compared to the fourth quarter of 2020, GDP decreased by 3.3% in real terms, after the slight increase (0.2%) registered in the previous quarter, reflecting the impact of mobility limitations as a result of the worsening of the pandemic crisis. The contributions of domestic demand and net external demand to the quarter on quarter rate of change of GDP were both negative, being more intense in the first case.