Spanish Economy Shows Resilient Growth with Rising Household Consumption
Spain's economy has shown promising growth, expanding by 0.8% in the second quarter of the year. This figure represents a marginal decline of one-tenth compared to the previous quarter, yet it is significantly bolstered by the surge in household consumption, which rose at a quarterly rate of 1.5%. This is a notable improvement, as it exceeds the consumption growth rate of the prior quarter.
Year-on-year, the Gross Domestic Product (GDP) increased by 3.1%, marking a commendable six-tenths increase from the first quarter of the year. This development is the highest growth rate observed since the first quarter of last year, underscoring a positive economic trajectory.
According to the latest national accounting data released by the National Institute of Statistics (INE) on Friday, the quarterly growth rate of the previous quarter has been revised upwards from 0.8% to 0.9%. However, there was a slight downward revision in the year-on-year rate for the same period, lowered to 2.5%.
In the second quarter, domestic demand was the primary contributor to the year-on-year GDP growth, accounting for 2.4 percentage points, while external demand added 0.7 percentage points. The quarterly growth rate of 0.8% was likewise supported by robust internal demand, which contributed 0.7 percentage points, contrasted with a minimal contribution of 0.1 percentage points from external factors.
Household consumption has emerged as a leading driver of this trend, with an increase of 1.5% surpassing the growth rates of earlier quarters. Conversely, public spending saw a deceleration, growing by just 0.7%, a decrease of four-tenths from the previous growth rate.
Investment also made strides, climbing by 0.4% between April and June; however, this represents a slowdown of seven-tenths from the first quarter's performance. A particular area of concern is the moderation in housing investments, which plummeted from an impressive 2.9% growth to a mere 0.5%.
The economic data released today reflects the strength and balanced growth of the Spanish economy, according to statements made by the Ministry of Economy, Trade, and Business. The ministry expressed confidence in the ongoing resounding economic performance, which continues to receive affirmation from both national and international organizations.
These indications of resilience are critical as Spain navigates the complexities of its economic environment, and the focus on household consumption suggests that consumer confidence may be returning, a crucial element for sustained economic expansion moving forward.
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