Spain’s Final Q2’21 GDP Marks A Year-On-Year Increase Of 17.5%, Still Below Estimates Of 19.8%

spanish GDPThe upturn in the Spanish economy and the recovery in consumption over the course of 2021 should be accompanied by a gradual recovery in the prices of goods and services

According to the National Institute of Statistics, Spanish GDP registered a rise of 1.1% in the second quarter of 2021 compared to the previous quarter in volume terms. This rate is 1.7 points higher than that recorded in the first quarter and 1.7 points lower than that reported on July 30. The year-on-year change in GDP is 17.5%, compared with -4.2% in the previous quarter. This rate is 2.3 points lower than that recorded on July 30.

This is a return to growth after a decline in the economy of 0.4% in the first quarter of the year, dragged down by the drop in household consumption and investment. This also coincided with the Filomena storm and the impact of the third wave of the coronavirus in January.

Spanish GDP saw a year-on-year rise of 17.5% in the second quarter of 2021, 21.7 percentage points above growth in the first quarter. However this is still below the National Institute of Statistics’ estimates, which put the increase at 19.8%.

Hours worked in the quarter increased by 4% quarter-on-quarter, a rise entirely led by the category of part-time jobs. Full-time hours worked did not increase at all in the second quarter, whereas in the first quarter they had risen by 1%.

On the other hand, hours worked grew by 29.5% year-on-year in the period, 32.2 percentage points higher than in the first quarter. In the category of full-time jobs, they increased by 18.9% year-on-year, equivalent to 2.8 million more full-time jobs than in the same period of 2020.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.