Spanish Economy Drops 0.3% in Q3


According to a release by the National Statistics Institute, Spanish Gross Domestic Product registered a quarter-on-quarter drop of 0.3% in the third quarter of 2012, this rate is one tenth less negative than that recorded the previous period.

In year-on-year terms, the growth rate of GDP was -1.6%, two tenths lower than that recorded the previous period, due to the lesser contribution of national demand to aggregate growth.  

The more negative contribution of national demand to aggregate activity this quarter was due to both the final consumption expenditure of the Public Administration and the investment in fixed capital. Household final consumption expenditure moderated its negative growth, from –2.1% to –2.0%, although the reduction of compensation per employee, the main household resource for dealing with consumption expenditure, from –5.1% to –5.5%. This household consumption behaviour may have been influenced by the purchases made in advance, due to the increase in the VAT rates that took place in September.

Gross formation of fixed capital increased its negative growth in seven tenths this quarter, from –9.2% to –9.9%. Considering the different types of asset, tangible assets registered one point greater decrease than aggregate (from –10.1% to –10.9%), with contractions in the investment in construction and in the investment in capital goods, from –12.6% to –7.3%, respectively. Demand for capital goods assets increased its negative growth, from –6.9% to –7.3%, in line with the evolution of import indicators for goods of this type. Investment in construction assets accelerate its negative growth in 1.1 points, from –11.5% to –12.6%.

Exports of goods and services experienced an increase of 1.4 points its growth, from 2.9% to 4.3%. In the case of goods, the acceleration was four tenths (from 3.3% to 3.7%), resulting from the greater flow of goods to countries not belonging to the European Union. Exports of non-tourism services registered an increase of 3.5 points (from 5.4% to 8.9%), and lastly, purchases by non-residents in Spain registered an increase of 0.8%. Imports of goods and services observed a reduction of 1.6 points of their negative growth rate (from –5.1% to –3.5%). On analysis of all of their components, imports of non-tourism services presented a rate of –1.4%, four tenths more than the previous quarter. Nevertheless, purchases by residents in the rest of the world saw a high decrease this quarter, from –2.2% to –8.3%. In turn, imports of goods registered a slightly more intense decrease this quarter, from –5.9% to –3.8%. 

Employment, measured in terms of full-time equivalent job posts, decrease its negative growth in one tenth, up to –4.6%. This result indicated a reduction of 789 thousand net fulltime jobs in one year.  


INE | Nuno Fontes | nuno@tradingeconomics.com
12/14/2012 12:10:20 PM