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ARCHIVED - GDP growth in Spain advances at a slower rate than predicted
The economy in Spain grew by just 1.1% in the second quarter of the year
According to the latest data published on Thursday September 23 by the National Institute of Statistics (INE), the Spanish economy grew by 1.1% in the second quarter of this year. It may not appear to be a particularly impressive figure, but it’s the first return to positive values after the country registered a 0.6% decline in the first three months, due to the impact of the latest wave of the coronavirus pandemic and the devastating effects of storm Filomena.
The quarterly growth if 1.7 points is lower than the figure predicted by the INE at the end of July, when a 2.8% increase in GDP was forecast for the April to June period.
At a year-on-year rate, the GDP in Spain shot up 17.5% after a standstill in 2020 and in the first quarter of this year due to the impact of the pandemic. This rate is 21.7 points higher than that of the first quarter and is actually the highest historically, although it is 2.3 points below the one initially estimated by the INE (19.8%).
Domestic demand added 17.3 points to the annual GDP between April and June, while external demand made a contribution of 20%, 1.4 points more than at the beginning of the year.
For its part, the Ministry of Economic Affairs and Digital Transformation highlighted in a statement that, although the INEs review points to lower growth in the second quarter compared to the preliminary estimate, “the indicators show that the economy has begun to recover from March, and is evolving from less to more in recent months.”
On another positive note, employment in general has increased in Spain, with the number of hours worked growing by 29.5%, which is 32.2 points higher than in the first quarter. Full-time equivalent jobs increased 18.9%, representing a boost of 2.8 million jobs in one year.
Household consumption increased by 4.7% in the second quarter, thus returning to positive rates, although this growth is 20% lower than the initial estimate. In addition, public spending accelerated its quarter-on-quarter growth by an impressive 50%.
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