Q4 GDP Expansion As Restrictions Eased In Dec

Q4 GDP: +1.0% q/q, -7.8% y/y; Prev (Q3): +16.1% q/q, -8.7% y/y;

Q4 BUSINESS INV +1.3% Q/Q, -10.3%Y/Y; Q3 +14.5% QQ, -11.6%YY

Q4 CONSUMER SPENDING -0.2% Q/Q, -8.4% Y/Y

Q4 GOVT SPENDING +6.4% Q/Q, +0.5% Y/Y

Economic growth expanded further in Q4, rising by 1.0% on a quarterly basis and coming in above market forecasts (BBG: 0.5%). The easing of restrictions in Dec provided a boost to the economy, especially to hospitality, car sales and hairdressers. However, over the year of 2020 GDP was down 9.9% against 2019, marking the highest decline on record. Household consumption declined by 0.2% q/q, its first decrease since Q2, while gov spending was up 6.4%, contributing 1.27ppt to economic growth. Business investment slowed to 1.3% q/q, after rising by 14.5% in Q3. Net trade contributed negatively to growth in Q4 for the second time in a row, shaving off 2.51ppt of GDP growth, with exports only up 0.1% q/q, wile imports rose 8.9% q/q.