• Wed. Feb 8th, 2023

Spain’s quarterly economic growth slows to 0.2%, missing expectations – Reuters

ByINVESTOR

Oct 28, 2022

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MADRID, Oct 28 (Reuters) – Spain’s economic growth slowed down sharply to 0.2% in the third quarter from the previous three-month period when gross domestic product expanded 1.5%, slightly missing expectations, flash data from the National Statistics Institute showed on Friday.

The economy was held back by a fall in investment, reflected especially in slowing construction, which, however, could not offset a strong performance of the services sector driven by a brisk tourist season.

Private consumption still grew 1.1% in the quarter, resisting high inflation recorded during the summer months, when it was above 10%.

The INE said separately on Friday Spain’s consumer prices in the 12-month period to October rose 7.3%, a slower pace than 8.9% in September and the lowest reading since January.

Analysts polled by Reuters had expected GDP to grow 0.3% quarter-on-quarter.

On an annual basis, Spain’s third-quarter economic output expanded by 3.8%, compared to a Reuters poll of 3.9%. In the second quarter, annual growth totalled 6.8%.

The government has said Spain will not enter recession in the coming quarters, as it pins it hopes on the resilience of the labour market. read more

Reporting by Joanna Jonczyk-Gwizdala and Belen Carreno, writing by Andrei Khalip

Our Standards: The Thomson Reuters Trust Principles.

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