The Spanish GDP Rebounded in Q3 after Nine Quarters of Contraction
Spain emerged from a two-year recession in the third quarter. Growth was driven by overseas sales as domestic demand fell 0.3%, the Bank of Spain said today. The decline in investment slowed and private consumption grew 0.1% from the previous quarter, when it was unchanged.
These data are positive to the extent Spanish economy represents 12% of the Eurozone economy (real GDP) which implies a positive contribution of 0.012% in Q3. However, Spanish economy is still depending on exports to drive growth as austerity continues to hold back domestic demand. The recent rise of euro against main currencies could weight on GDP in Q4.
More from Bloomberg:
Spain emerged from a two-year recession in the third quarter, strengthening Prime Minister Mariano Rajoy’s efforts to repair the nation’s finances and reduce the 26 percent jobless rate.
Gross domestic product expanded 0.1 percent from the second quarter, when it shrank 0.1 percent, and fell 1.2 percent from a year ago, the Madrid-based Bank of Spain estimated in its monthly bulletin today. The data, which are preliminary, matched the median estimate of 37 economists in a Bloomberg News monthly survey.