Spain GDP Growth Rate Slows to 0.7% in Q3

The Spanish economy advanced 0.7 percent on quarter in the three months to September of 2016, easing slightly from a 0.8 percent growth in the previous period and in line with preliminary estimate. It was the twelfth straight quarter of growth, but the weakest reading since the fourth quarter of 2014, as household consumption and fixed investment grew at a slower pace while government spending rebounded and net external demand contributed positively. Compared to the same period of previous year, the GDP advanced 3.2 percent.

On a quarterly basis, household spending expanded 0.6 percent, slowing from a 0.7 percent gain in the previous period and gross fixed capital formation edged up 0.1 percent, following a 1.1 percent rise in the second quarter. Investment in equipment and goods went up 0.3 percent (+1.9 percent in Q2) and construction increased 0.2 percent (+0.5 percent in Q2) while intellectual property shrank 0.7 percent (+1.3 percent in Q2). Meanwhile, government spending rebounded sharply by 1 percent, the fastest since the first quarter of 2015, following a 0.6 percent contraction in the second quarter.

Net external demand contributed positively, as exports fell 1.3 percent (+3.1 percent in Q3), while imports declined at a much faster 1.8 percent (+2 percent in Q2).

On a yearly basis, the economy expanded 3.2 percent, down from 3.4 percent in the second quarter but matching preliminary estimates. 

Spain GDP Growth Rate Slows to 0.7% in Q3

INE | Joana Ferreira |
11/24/2016 8:27:15 AM