October 7, 2022

The Spanish economy grows by 1.5% in the second quarter

Madrid (EFE).- The National Institute of Statistics (INE) has boosted Spain’s second-quarter economic growth to 1.5%, four-tenths more than initially in July, after a significant upward revision in export growth in the period of time.

The INE has also revised down data for the first quarter, in this case, a period in which the economy contracted by 0.2%, compared to the 0.2% growth reported at the time, already marking a slowdown from a dry spell. of activity due to the outbreak of the war in Ukraine, the prevention of the ommicron variant of covid and the transport employers’ strike.

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

In this way, the progress of the Spanish economy between April and June was supported more by exports – which increased by 4.9% – than by the recovery in household consumption – which increased by 1.2%, minus half of what in July.

Lower export growth

Export growth was lower than in the previous three quarters, but slowed much less than the INE had reached in July (1.6%).

The Port of Valencia
The port of Valencia, in a file image. EFE/Kai Forsterling

Increase in household consumption

Faced with the increase in household consumption, government consumer spending has contracted by 1.3%.
Investment grew by 2.5%, driven by a significant increase in investment in 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 image. EFE/Fernando Villar

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

For the Ministry of Economy, these data confirm the solidity of the Spanish economy’s growth and are a consequence of the measures taken by the government to protect companies, households and vulnerable groups from the price increases, as well as the progress in deployment of the recovery plan.

All sectors are growing except agriculture and livestock

On the supply side, the 3.8% contraction in the agriculture, livestock, forestry and fisheries sectors is striking, which exacerbated the contraction that started the previous quarter.

Workers on a construction site
Construction workers in Bilbao, in a file image. EFE/Luis Weave

The other sectors, especially construction, grew by 2.5%, followed by manufacturing (1.7%) and services (1.6%). The manufacturing industry grew by 1.4% and trade, transport and hotels by 5.2%.

Employment in the economy, measured in hours worked, grew by 1.1% in the second quarter, while measured in full-time equivalents the increase was 1% due to the increase in average full-time employment (0.1%).
Last year, 939,000 full-time equivalents were created, 5.2% more.

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 was EUR 323,810 million, the highest quarterly figure in the INE’s historic series, EUR 5,151 million more than the first quarter and 31,013 million more than the second quarter of 2021.

Web Edition: Rosa Corona

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