GDP grows 4,2% year on year in the third quarter and 2,9% quarter on

According to data from INE

The Gross Domestic Product (GDP) grew 4,2% in the third quarter, in year-on-year terms, and increased by 2,9% compared to the previous quarter, released today the National Institute of Statistics (INE).

According to the flash estimate of the quarterly national accounts released by INE, "GDP, in real terms, registered a year-on-year change of 4,2% in the 3rd quarter of 2021".

“In the previous quarter, the year-on-year change in GDP was 16,1%, a result largely influenced by the strong impact of the pandemic in the 2nd quarter of 2020”, highlights INE.

As the institute explains, "the partial dissipation of this base effect translated into a positive contribution of domestic demand to the year-on-year change in GDP lower than that calculated in the previous quarter."

In turn, INE continues, the contribution of net external demand “was slightly more negative in the 3rd quarter, reflecting a more accentuated increase in imports of goods and services than in exports of goods and services”.

The institute also refers that, in the 3rd quarter, “the export deflator and, to a greater extent, the import deflator will have registered expressive growths, mainly related to the evolution of the prices of energy products and raw materials, extending to loss in terms of trade observed in the previous quarter'.

In relation to the second quarter, «GDP increased by 2,9% in volume, with a positive contribution from net external demand to the quarter-on-quarter change in GDP, which had been negative in the 2nd quarter, and a less intense positive contribution. of domestic demand in the 3rd quarter of 2021", can be read in the highlight.

The chain growth “reflects the gradual reduction of restrictions imposed by the pandemic, following the increase in the pace of vaccination against Covid-19, after two quarters with opposite results: the strong reduction in GDP in the 1st quarter (-3,3%) , determined by general confinement and an increase of 4,4% in the 2nd quarter, marked by the gradual lifting of restrictions on mobility», explains INE.

The Government forecasts that GDP will grow 4,8% in 2021 and 5,5% in 2022.

The detailed results of the quarterly national accounts for the 3rd quarter of 2021 will be released on 30 November by INE.