Wednesday 12/8/21
ECONOMY

Spain GDP rises by 2% with domestic consumption in decline

The consumption of Spanish families, one of the main drivers of the Spanish economy, contracted by 0.5% in 3Q.
Minister of Finance, Nadia Calvino. Photo: La Moncloa/File photo.
Minister of Finance, Nadia Calvino. Photo: La Moncloa/File photo.

The gross domestic product (GDP) of Spain grew by 2% in the third quarter of 2021 compared to the previous quarter. This growth rate is 9 tenths higher than that of the second quarter of 2021, which was 1.1%.

In year-on-year terms, the rebound was 2.7%, a rate that is "14.8 points lower" than that of the second quarter (17.5%), as emphasized by the National Institute of Statistics (INE) in a press release.

The National Accounts data advanced by the INE also show that the consumption of Spanish families, one of the main drivers of the Spanish economy, contracted by 0.5% in 3Q.

This decrease contrasts with the 4.7% increase in the previous quarter.

Public administration spending increased 0.1%, insufficient to compensate for the decline in household spending.

All in all, total spending on final consumption was down 0.3%. Gross capital formation or investments increased 2% in the third quarter (after falling 3.1% in the previous one).

GDP-q3-by-ine

Source: INE.

Domestic demand slows down

The national demand as a whole lost momentum and only grew by 0.2%, compared to 2.1% in the second quarter.

These figures, which suggest a slowdown in domestic demand, are known after the day before, the highest inflation record (5.5%) in 29 years was known.

The Spanish GDP for the third quarter of 2021 accounted for 301,432 million euros, which placed Spain as the 13th economy in the world ranking of quarterly GDP.

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