The Spanish economy left the recession in the third quarter of the year after registering a growth of START 16.4% between July and September, its largest quarterly advance in the historical series managed by the National Statistics Institute (INE) and which began in 1970.
However, this growth is slightly less than advanced at the end of October, when the indicators then pointed to a rise in GDP of 16.7%.
Statistics has also modified the year-on-year data that it provided in the October data advance: GDP registered a year-on-year decline of 9% in the third quarter, compared to the 8.7% decrease initially reported. In any case, this decline is much more moderate than that of the second quarter, when the Spanish economy registered a year-on-year drop of 21.6%.
The agency explains that this “update” of the advanced data at the end of October is due to the fact that at that time most of the statistical indicators on recent economic evolution offered results until August, thus missing the month of September.
Thus, the results published this Wednesday incorporate all the statistical indicators that mark the economic evolution of the first three quarters of 2020, covering “in the vast majority of cases”, up to the entire third quarter.
After the 16.4% growth achieved in the summer months, Spain comes out of the technical recession into which it entered the second quarter of the year after having recorded two consecutive negative quarters, with falls in the economy of 5.3% in the first quarter and 17.9% in the second.
In interannual rate, GDP for the third quarter contracted by 9%, compared to a decrease of 21.6% in the previous quarter. This is the second largest year-on-year decline in the entire series after the one registered in the second quarter of this year.
The National demand subtracted 7.2 points from the year-on-year variation of GDP in the third quarter, rate 11.5 points higher than in the second quarter. For its part, external demand subtracted twice as much as expected, 1.8 points, which is 1.1 points more than in the previous quarter.
Quarterly data show a historical rise in household consumption of 20.8%, in contrast to the decline, also historical, that this indicator registered in the second quarter (-20.7%).
For its part, public spending increased between July and September by 1.2%, nine tenths more than in the second quarter, while consumer spending by non-profit institutions and at the service of households did not change, compared to the 0.1% increase in the previous quarter.
Investment, on the other hand, registered a historical advance of 21.7% in the third quarter (-20.6% in the second quarter), with a record increase of 42.6% in the case of investment in machinery and equipment goods.
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