Spain revises third quarter economic growth upwards, to 2.6%

December 23, 2021

Spain’s GDP grew 2.6% in the third quarter, above the initial estimate of 2%, according to final figures published Thursday by the National Institute of Statistics (INE).

That figure, higher than the 1.2% growth registered in the second quarter, confirms the progressive recovery in Spain after the decline caused by the covid-19 pandemic.

However, it is lower than the 2.8% forecast of the Bank of Spain for the third quarter.

According to the INE, Spanish economic activity was driven in the third quarter by the services sector, which grew 4.1% from the previous quarter, with an 11.8% rise in commerce, transport and hotels.

Industrial activity, meanwhile, grew 2% as did construction, while the agricultural sector fell 4.7%.

Those positive results were supported by growing domestic demand, which increased 2.5% year-on-year. Foreign demand, in turn, grew 0.9% year-on-year.

The Bank of Spain revised down its growth forecasts for 2021 (+ 4.5%) and 2022 (+ 5.4%) on Friday, close to the projections of the IMF and the European Commission, but below those of the government , which forecast + 6.5% in 2021 and + 7% in 2022.

The Spanish economy is one of the most affected by the covid-19 pandemic, with a 10.8% drop in GDP in 2020. The IMF and the European Commission predict that it will not recover its pre-pandemic level before 2023.

tpe / CHZ / mas / zm