The latest National Accounts by Institutional Sector from INE reveal that the rise in household disposable income, which grew by 1.3% compared to the previous quarter, contributed to this development. This was accompanied by a 1.5% increase in final consumption expenditure.
The increase in final consumption expenditure surpassed the 1.3% growth of the disposable income. These variables are in nominal terms, indicating that the evolution of final consumption is also affected by rising prices.
In real terms, final consumption rose by 0.9% for the year ending in the first quarter of 2025, as reported by INE.
Households’ financing capacity reached 4.4% of the Gross Domestic Product (GDP), marking a decrease of 0.2 percentage points from the previous quarter.
