GDP grows at an annualized 3.8%, three points less than in the previous quarter, following the collapse of household consumption due to high prices
High inflation affects the economy completely. After a good first and second quarter, the third quarter (July to September) slowed down, despite the attraction of tourism due to the summer season. Quarter-on-quarter GDP grew just 0.2%, while it grew 3.8% year-on-year, better than expected by some organizations but well below previous quarters.
According to National Accounts data provided by the INE this Friday, GDP for the third quarter (0.2%) is 1.3 points lower than the data recorded in the second quarter. And the annual variation (3.8%) is three points lower than the 6.8% that rose from April to June.
This is largely due to the fact that household consumption grew by 0.8 points in the third quarter, one point lower than in the second quarter. In addition, foreign demand contributed 3 points to GDP, two less than in the previous quarter.
Despite this data, the numbers are better than expected by both the Bank of Spain, which forecast quarter-on-quarter growth of 0.1%, and the Fiscal Authority (AIRef), which assumed the economy had stagnated and doubted progress could be made. could be greater than 0%. Of course, the INE warns that the final revision of the GDP data is subject to a lot of uncertainty and that the revision could be of a “larger than usual” magnitude.
From the Ministry of Economy, they are optimistic with this data, explaining that the country has continued to grow “even in a quarter marked by the deterioration of the external environment and the rise in interest rates”. For this reason, they state that the 3.8% year-over-year progress makes it “very likely” that the 2022 annual growth rate will be “even above” the 4.4% of the government’s forecast.
Source: La Verdad
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