NOTE! This site uses cookies

By continuing to browse the site you are agreeing to our use of cookies. For more detalis, see Read more

Accept

What are you looking for?

Catalonia posted a 1.5% annual GDP growth rate in September

The Catalan economy grew by 1.5% at the end of the 3rd quarter of 2014 in annual terms, while at the end of June it was growing at a rate of 1.3%. Catalonia has therefore accumulated 4 consecutive quarters with positive annual economic growth. However, although the economic recovery has slowed somewhat, growth remains positive, as other figures show. In quarterly terms, Catalonia’s GDP increased by 0.3% between July and September, which represents a drop from the 0.5% growth registered for April – June and also for January – March. Meanwhile, in Spain as a whole, the economy grew by 1.6% in annual terms at the end of September and by 0.5% in quarterly terms. The European Union is posting the same growth rates as Catalonia: 1.5% in annual terms and 0.3% in quarterly figures.

SHARE

19 December 2014 08:52 PM

by

ACN

Barcelona (ACN).- The Catalan economy grew by 1.5% at the end of the 3rd quarter of 2014 in annual terms, while at the end of June it was growing at a 1.3% rate, according to figures released on Friday by the Catalan Statistics Institute (Idescat). Catalonia has therefore accumulated 4 consecutive quarters with positive annual economic growth. However, although the economic recovery has slowed somewhat, growth remains positive, as other figures show. In quarterly terms, Catalonia’s GDP increased by 0.3% between the start of July and the end of September, which represents a drop from the 0.5% growth registered for April – June and also for January – March. Meanwhile, in Spain as a whole, the economy grew by 1.6% in annual terms at the end of September and by 0.5% in quarterly terms. The European Union is posting the same growth rates as Catalonia: 1.5% in annual terms and 0.3% in quarterly figures.


Catalonia is consolidating its economic recovery, although it has lost some of its vigour from the first half of the year. In 2013, Catalonia posted a 0% of GDP quarterly growth rate for January – March, started to grow by a shy 0.1% in the second and third quarters of last year, and posted a 0.2% for the period October – December. 2014 started much better and the Catalan economy grew by 0.5% in both the first and second quarters. This Friday, figures have been released that show the economy achieved 0.3% growth between July and September. However, despite a slower growth rate, Catalonia has now gone 7 consecutive quarters without negative quarterly figures.

Regarding the annual rates, 2013 started with a drop in GDP due to the recession in 2012. Catalonia posted a -1.3% figure in the first quarter of last year. By June 2013, the Catalan economy had dropped by -0.9% in annual terms and, by September 2013, it had decreased by -0.4%. However, the change in the trend came with the figures from the 4th quarter, which saw 0.4% growth by December 2013. Taking into account the dynamism of the first and second quarters of 2014, Catalonia’s GDP grew in annual terms by 1% and 1.3% respectively. This Friday, the Idescat released figures showing that between September 2013 and September 2014, the Catalan economy had grown by 1.5%.

Internal demand has increased by 2% 

One of the main highlights of the 3rd quarter of 2014 is the increase of domestic demand, which grew by 2%. The reasons for this are the increase of household consumption by 1.7% in annual terms as well as that of the public sector (+1.9%) and private companies (+3.5%). Household consumption had already since December 2013 started to grow in annual terms, but the increase in demand from the public and private sectors is more recent. In addition, spending in private investment is now at its highest since 2007.

Another point of note is the negative effect of the external trade sector, which fell by 0.4% due to a major increase in imports compared to exports. Exportation of goods and services increased by 4.3% in annual terms in September. However, imports grew by 9.3% in the same period.

The industrial sector is weakened, although it keeps growing

Regarding the main economic sectors in Catalonia, industrial growth slowed, achieving only a 0.4% increase in annual terms in September, which is in line with the stagnation of the industrial production index. The service sector continued to grow and registered a 2.2% increase at the end of the 3rd quarter of 2014, while construction and agriculture posted negative figures: -2.9% and -3.5% respectively.

The results for the last quarter of this year (which should be published in late February or early March 2015) will include for the first time the economic effects of drug trafficking and prostitution, following the new accounting instructions set by the European Union in September 2014. The Idescat will start implementing the SEC 2010 European System in the next quarterly figures release and therefore the figures released this Friday are the last ones without such illegal economic activities included. By including these new figures, the GDP growth rate is certainly bound to increase. 

SHARE

  • The Catalan economy grew by 0.3% between July and September (by ACN)

  • The Catalan economy grew by 0.3% between July and September (by ACN)