The Spanish economy confirms its growth in the third quarter, increasing by 0.8% compared to the previous period. Compared to the same period of the previous year, it accelerates by 3.3%, one tenth more than in the second quarter of this year, “the highest growth in the last year and a half,” as assessed by the Minister of Economy, Carlos Cuerpo.
This continues the trend of the previous two quarters, with increases of 0.9% and 0.8%, confirming Spain's exceptional positive situation within the eurozone with much more moderate growth rates. With these latest figures, the GDP growth of around 3% this year seems more than assured. Pending the data for the last quarter, the Spanish economy “confirms its dynamism in 2024, and continues to lead the growth among the main economies of the European Union,” the minister pointed out.
National demand contributed 2.8 points to the year-on-year GDP growth. On the other hand, external demand contributed 0.5 points.
This growth is supported by three fundamental factors. On the one hand, strong growth in household consumption, which increases by 1.2% on a quarterly basis, and public administration spending, which increases by 2.5% in the same period.
Household consumption increases by 3% on a year-on-year basis. This represents two tenths more than that recorded in the advance at the end of October. As for government spending, it grows by 5.1% compared to the same period of the previous year.
The negative data comes from the investment side, which decreases by 1.3% compared to the previous quarter, despite the European funds and the interest rate reduction. It is the weak point of the Spanish economy in recent months and it responds to a certain “uncertainty,” as explained by Raymond Torres, the director of economic analysis at Funcas. “There is a double uncertainty: on one hand, geopolitical and international uncertainty due to changes in governments around the world and conflicts, and on the other hand, internal uncertainty due to the political climate,” he explains.
On the other hand, the growth of the external sector stands out. Exports increased by 0.4% in the third quarter on a quarterly basis and by 4.3% compared to the same period of the previous year.
And the third pillar supporting the growth data is the improvement in productivity per hour worked, which increased by 2.5% year-on-year. The number of hours actually worked increased by 0.9% year-on-year this quarter, which is 1.4 points less than in the previous one. In quarterly terms, it varied by 0.2%.
All sectors of activity contribute to growth, with a particularly significant increase in the industry sector, especially in manufacturing, which grew by 4.4% compared to the same period last year. Thus, the gross value added of industrial branches increased by 4.0%. The gross value added of Construction increased by 2.4% compared to the third quarter of 2023, Services by 3.5%, and primary branches by 8.3%.
