Wed. Sep 28th, 2022

Madrid (EFE).- The National Institute of Statistics (INE) raised Spain’s economic growth to 1.5% in the second quarter, four tenths higher than it had initially improved after a significant upward revision of export growth in July.

INE also revised down, in this case, data for the first quarter, a period in which the economy contracted by 0.2% compared to a reported 0.2% growth, meaning an already sluggish dry spell slowed activity due to the outbreak of war in Ukraine, an omicron case of Covid and transport employer strikes.

Data for the second quarter showed that domestic demand (consumption and investment) contributed 0.6 percentage points to the quarter’s growth, while foreign demand (exports and imports) contributed the remaining 0.9 points.

Thus, the progress of the Spanish economy between April and June was supported to a greater extent by exports – which increased by 4.9% – compared to the recovery of household consumption – which increased by 1.2%, less than half of what was estimated in July.

Lower export growth

Export growth was lower than that recorded in the previous three quarters, but it was much lower than the progress INE made in July (1.6%).

Port of Valencia
Port of Valencia, in a file photo. EFE/Kai Forsterling

Increase in household consumption

Faced with rising household spending, public administration spending contracted by 1.3%.
Investment increased by 2.5%, driven by a significant increase in investment for housing and construction (6.5%), while business investment in machinery and capital goods contracted by 2.3%.

A supermarket in Madrid.
A supermarket in Madrid, in a file photo. EFE/Fernando Villar

Imports rose 2.8%, lower than initially estimated (4.6%), a downward revision in line with national consumption.

For the Ministry of Economic Affairs, these data confirm the robustness of the growth of the Spanish economy and the result of the measures taken by the government to protect companies, families and vulnerable groups from price increases, as well as the establishment of progress recovery plans.

All sectors grew except agriculture and livestock

On the supply side, the agriculture, livestock, forestry and fisheries sector contracted by 3.8%, extending the contraction that started the previous quarter.

Workers at a construction site
Construction workers in Bilbao, in file photo. EFE/Lewis Wave

The rest of the sectors grew, especially construction, by 2.5%, followed by industry (1.7%) and services (1.6%). Manufacturing industry grew by 1.4% and trade, transport and hotels by 5.2%.

Employment in the measured economy rose 1.1% in the second quarter, while measured in full-time equivalent jobs, the advance was 1% (0.1%) due to an increase in average full-time working hours.
Last year, 939,000 full-time equivalent jobs were created, up 5.2%.

Gross national income and gross national disposable income increased by 1.5% and 1.2% respectively compared to the previous quarter.

GDP at current prices stood at 323,810 million euros, representing the highest quarterly figure in the INE’s historical series, 5,151 million more than in the first quarter and 31,013 million more than in the second quarter of 2021.

Web version: Rosa Corona

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