Historic GDP growth in the third quarter: it grows by 16.7% and Spain comes out of recession
After two quarters of declines (5.2% and 17.8%), caused by the coronavirus pandemic and, above all, the total confinement that Spain experienced for almost four months, Spain’s GDP grew by 16, 7% in the third quarter, a historic increase. In fact, it is the biggest quarterly increase since record breaking.
This increase exceeds the forecasts of the government and the Bank of Spain a few months ago, which announced quarterly growth of around 13%. The growth, which must be confirmed by the INE next December, will bring Spain out of the recession, since this last figure allows the GDP growth rate over one year to be reduced from 21.5% to 8, 7%. yes, in the absence of seeing data for the last three months of 2020.
These statistics are in line with the forecasts of the executive which announced a decline in the economy over the whole of 2020 of 11.2% a few weeks ago.
Great rebound in consumption and investment
This great economic recovery is due to the activity of the summer period, since they announce a rebound in consumption of more than 20%, very similar to investment, which increases by 19.9%. And all this with the existing restrictive measures and the reduction of tourism, especially at the international level.
In general, almost all indicators are recording historic increases, which are logical, after several months of economic slowdown. For this reason, the increase is stronger in the sectors particularly affected during the first half of the year and which, with the reopening, experienced a significant rebound, such as the trade, hospitality and transport sectors, which grew by 42% over the year. trimester. Industry grew 27% while construction also saw a sharp rise of over 20% during the summer months.
Working hours are more important than ever
Employment in the economy, in terms of hours worked, rose 24.7% in the third quarter from the previous quarter. This rate is lower than that of full-time equivalent jobs (16%, or 33.7 points more than in the second quarter) due to the observed increase in average full-time hours (+ 7.5%).
In inter-annual terms, hours worked fell by 6.2%, a rate of 18.7 points higher than in the second quarter. For their part, full-time equivalent jobs fell by 5.5%, 12.9 points more than in the second quarter, which means that 1.01 million equivalent jobs were destroyed in one year on time. full, compared to 3.4 million jobs destroyed in the second quarter