Gross Domestic Product (GDP), in real terms, recorded a year-on-year rate of change of 2.5% in the first quarter of 2023 (3.2% in the previous quarter). The contribution of domestic demand to GDP year-on-year growth rate diminished in the first quarter, shifting from 2.3 percentage points in the fourth quarter to a null contribution, as private consumption decelerated and Investment decreased, mainly reflecting the negative contribution of Changes in Inventories, largely associated with the dynamics of international trade flows. Indeed, in the first quarter, Exports of Goods and Services in volume accelerated, while Imports of Goods and Services decelerated, leading to an increase in the net external demand contribution to 2.6 percentage points (0.9 percentage points in the fourth quarter). In nominal terms, the external balance of goods and services was positive in the first quarter (1.6% of GDP), which was not observed since the fourth quarter of 2019, reflecting the combined effect of gains in terms of trade and the positive behaviour in volume.
Compared to the fourth quarter of 2022, GDP increased by 1.6% in volume (0.3% growth in the previous quarter). The contribution of net external demand to quarter-on-quarter GDP rate of change was 2.5 percentage points, after being negative in the fourth quarter (-0.2 percentage points), while domestic demand contribution turned negative from 0.6 percentage points in the fourth quarter to -0.8 percentage points.