The Spanish economy grew 0.8% in the third quarter due to consumption and public spending

The Spanish economy grew by 0.8% in the third quarter of the year, the same as in the previous quarter, thanks, above all, to public spending, which advanced at a quarterly rate of 2.5%, a rate two points higher than previous quarter and the highest in the series, which begins in 1995.

For its part, household consumption increased by 1.2%, one tenth more than in the previous quarter, according to National Accounting data published this Monday by the National Institute of Statistics (INE), in a context of moderation of inflation.

Economic activity does not step on the brakes in Spain quarter by quarter. At the start of the year, GDP growth was 0.9%. In the second quarter, 0.8%. The latter is practically the same increase as in the summer, as we learned this Wednesday.

In an interannual rate, the Gross Domestic Product (GDP) increased by 3.3%, one tenth more than in the previous quarter but one tenth less than what was advanced at the end of October, when a rate of 3.4% was expected. Despite this, it is the highest year-on-year rate since the first quarter of 2023.

Spain leads the main economies

“In the absence of data from the last quarter, the Spanish economy confirms its dynamism in 2024, and continues to lead growth among the main economies of the European Union,” the Ministry of Economy highlighted in an assessment sent to the media.

With the data for the third quarter, the Spanish economy has accumulated 17 consecutive quarters of quarterly increases and 14 quarters of interannual advances.

In the third quarter of the year, national demand contributed 2.8 points to the year-on-year GDP growth, while external demand contributed half a point. For its part, the quarterly GDP growth of 0.8% was based exclusively on domestic demand, whose contribution was one point, compared to a negative contribution from the foreign sector of two tenths.

Faced with the quarterly increase in consumption by households and Public Administrations, investment fell by 1.3% in the third quarter, turning negative after three quarters of increases, due to the fall in investment in housing by 1.3%. 8% compared to the previous quarter.

If the third quarter is analyzed by sector, all branches of activity contribute positively to economic growth, with a very relevant contribution from the manufacturing industry.