Quarterly National Accounts Q3-24 Advance
Published: October 30, 2024
Source: The Spanish Economy RSS
Economic Growth
Spain’s gross domestic product (GDP) grew by 0.5% in the third quarter of 2024 compared to the previous quarter, according to preliminary estimates from the National Institute of Statistics (INE).
This growth is slower than the 0.8% recorded in the second quarter of the year and marks the lowest quarterly growth rate since the first quarter of 2023.
Key Drivers
The main drivers of growth in the third quarter were:
- Domestic demand: Private consumption and investment both contributed positively to GDP growth.
- Exports: Growth in exports outpaced imports, contributing to a positive net trade balance.
Slowdown in Services Sector
However, the services sector, which accounts for about two-thirds of Spain’s GDP, saw a slowdown in growth in the third quarter. This was particularly pronounced in the tourism and hospitality sectors.
Inflation and Interest Rates
Spain’s inflation rate remains elevated, with the latest data showing a 6.5% year-on-year increase in September. The European Central Bank has recently begun raising interest rates in an attempt to curb inflation.
Outlook
The INE has not yet released a forecast for Spain’s economic growth in the fourth quarter of 2024. However, economists are generally cautious in their outlook due to the persisting inflation and the war in Ukraine.
The government has announced a package of measures to support economic growth, including tax cuts and increased public spending. It is hoped that these measures will help to mitigate the impact of the current economic headwinds.
Quarterly National Accounts Q3-24 Advance
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