Spain’s economy is slowing down
2022.12.23 12:57
Spain’s economy is slowing down
Budrigannews.com – According to revised data released on Friday, the National Statistics Institute (INE) reported that Spain’s economy expanded by 0.1 percent in the third quarter. This was a significant slowdown in growth in comparison to the 2.0 percent recorded during the preceding three months.
The quarter’s final data showed that strong exports and robust tourism, a sector that has returned to pre-pandemic levels, made up for weak domestic demand in the summer.
Good employment data were also supporting Spain’s GDP, which is unusual in a nation where slowdowns typically coincide with massive job losses.
The impact of Russia’s invasion of Ukraine, which has caused inflation to average 8.5% this year, has slowed household consumption growth to 0.1% from 1.7%.
In any case, the most recent estimate updates by the Bank of Spain and global associations, for example, the IMF do exclude a colder time of year downturn in their focal situations.
The preliminary reading of 0.2% growth that was released two months ago was revised down in the GDP data for the third quarter. However, year-over-year growth of 4.4% in the third quarter was higher than the initial figure of 3.8%.
The INE likewise reexamined quarterly Gross domestic product information for the second quarter to a 2.0% development from a past extension of 1.5% and the yearly Gross domestic product figure for a similar quarter to 7.6% development from a past 6.8% development.
In comparison to the preceding quarter, activity in industry and housing declined, as did investment in the construction sector.
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The majority of analysts anticipate annual growth of 4.6 percent, and the government stated earlier this week that economic growth in 2022 could exceed its own forecast of 4.4 percent.
In comparison to the Bank of Spain’s 1.3% growth projection for 2023, the government anticipates growth of 2.1%.
