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INE increases second-quarter growth by 4 tenths to 1.5%, with a strong recovery in household consumption.

Date: October 2, 2022 Time: 18:59:42

The National Institute of Statistics (INE) confirmed this Friday that Spain grew by 1.5% in the second quarter compared to the previous quarter. This is 4 tenths more than the institution itself predicted, with a strong recovery in household consumption as well as in the foreign sector.

INE explains that in the preliminary data for the second quarter, released at the end of July, most economic development indicators for the quarter offered results up to May. And sources in the Ministry of Economy emphasize that these figures “confirm the strength of the growth of the Spanish economy, driven by national demand and exports.”

In particular, household demand rose strongly in the second quarter, up about 2.4 points from January to March, despite the blow from inflation, which set a record for this energy crisis in July, rising to 10.8%, and in August it fell to 10.4%.

“Measures taken to protect businesses, families and vulnerable groups from rising energy and other commodity prices, as well as progress in rolling out the Recovery Plan, explain this good behavior,” they affect the economy.

Meanwhile, exports of goods and services rose by more than 10%, the fastest quarter-on-quarter pace since summer 2020, when it rebounded nearly 30% after the Great Pandemic Lockdown.

This Friday, INE also analyzed the dynamics of GDP in the first quarter of 2022, which ended up decreasing by -0.2% “due to the impact of the pandemic, traffic shutdowns and the outbreak of the Russian war in Ukraine,” they list. from the ministry headed by the vice president for economics.

Spain leads in growth

Thus, the statistics confirm that in the second quarter, Spain increased the economic growth of the Organization for Economic Co-operation and Development (OECD) by five times as a whole. 1.5% between April and June in our country is allocated compared to an average of 0.3% in its 38 constituent states, always compared to the previous quarter.

In addition, the OECD indicated in August that Germany had recovered to pre-pandemic levels of activity at the end of this second quarter, the last of the seven largest (G7) economies to have yet to do so. Spain has not yet reached it, it is close to 2 points, and expectations indicate that it will not reach this until the end of 2023 or early 2024, after slowing down the recovery due to the inflationary crisis and uncertainty about the Russian invasion of Ukraine.

This delay in Spain’s recovery from the historic shock of COVID is due to the large weight of the services sector in GDP, and in particular tourism, which this year experienced its first full high season since 2019 without restrictions, with a headwind created by a general increase in prices.

Despite this, our country leads the growth estimates for the end of 2022 and 2023 and could become the only major eurozone economy to avoid a recession that dangerously threatens Germany itself.

Source: www.eldiario.es

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