In line with the figures advanced by Spanish statistics office (INE), Spain’s GDP grew 3.2% year-on-year in the third quarter, easing from the 3.4% registered in the previous one. Domestic demand remained the main growth driver, contributing 2.66 pp.
The contribution from external demand was positive for the second consecutive quarter (0.66pp), providing more balanced economic growth. In quarterly terms, GDP grew 0.7% in the third quarter (0.8% in the second).
But the breakdown of GDP aggregates showed a less favourable trend. Consumption remained solid (+0.6% in the quarter) but slowed on a year-on-year basis from 3.2% to 2.8%. Gross fixed capital formation also slowed significantly from 3.6% to 3.1% in the third quarter from a year earlier (quarter-on-quarter growth of 0.1% vs 1.1% in the second quarter). This was the result of the slump in investment in capital goods (up 0.3% vs 1.9% quarter-on-quarter) and in copywrite (down 0.7% vs growth of 1.3%).
The contribution from domestic demand fell from +2.9% to +2.6%, given that spending only increased in the Public Administrations, from +0.8% to +1.4%. The external sector’s contribution improved slightly from +0.5% hasta +0.6%. The figure is not as good as it might seem, however, because it was not due to greater export growth (+2.8% year-on-year vs +6,4%), but to a significant slowdown in imports ((+0.9% year-on-year vs +5,1%).