The INE revises GDP upwards in the second quarter, after acknowledging that growth was negative until March

The National Institute of Statistics (INE) has revised upwards by three tenths the growth registered by the GDP in the second quarter of the year. The Spanish economy grew by 1.5%but it did so after starting the year in negative, with a GDP loss of 0.2%, which contrasts with the +0.2% that had been estimated up to now.

In this way, part of the growth that was not consumed in the first quarter has been transferred to the second in the National Accounts statistics published this Friday.

[La economía española acelera en el segundo trimestre del año y crece un 1,1% por el tirón del consumo]

It is noteworthy that the household final consumption expenditurewhich had been key to the growth data that was published in the advance of these data last July, was much lower than calculated.

Specifically, he recorded a growth of 1.2%, compared to the 3.2% estimated before. Meanwhile, business spending was somewhat higher than estimated (0.5%) and public spending fell 1.3%.

In year-on-year terms, the variation in GDP was 6.8%, compared to 6.7% in the previous quarter. It is a figure five times better than the one advanced on July 29.

The effect that inflation is having on economic progress is increasing. In fact, in the second quarter the implicit GDP deflator increased by 3.6% compared to a year earlier and three tenths compared to the previous quarter.

The inflation, the energy crisis and the problems of the industry have been setting the pace of the Spanish economy since the start of the year. However, it is expected that the third quarter will also be positive in terms of growth thanks to summer consumption. The fear of economists focuses on what happens from now on, in the last quarter of 2022 and the start of 2023.

2% in 2023

for now, the Government has already revised growth down twice planned for next year and after the last reduction it is expected to be 2%.

[Montero rebaja la previsión del PIB de 2023 al 2%, siete décimas menos que en julio, tras anunciar la tasa a los ricos]

Since the pandemic began, INE statistics have been characterized by continuous revision due to the difficulty of evaluating economic behavior in the face of such a profound shock.

Last September, the INE revised its GDP fall data for 2020, to 11.3%, and improved the figures for 2021, to 5.5%.

[El INE revisa y empeora la caída de PIB de 2020]

Employment

Regarding the labor market data collected by the National Accounts, there are data that show a certain exhaustion, although the productivity per full-time equivalent job is in positive numbers (1.3%) for the second consecutive quarter, after the negative data of last year.

In year-on-year terms, employment continues to register significant growth, 4.9%. But it is a figure four tenths lower than the previous quarter. Meanwhile, in full-time equivalent jobs the variation is -0.4%.

Source: Elespanol

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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