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Economy shows buoyant growth despite Catalunya 'crisis'
Tuesday, October 31, 2017 @ 12:46 AM

SPAIN'S economy continues to grow at above the forecast 3% and its GDP is rising – despite the unsettled political situation in Catalunya, according to the National Institute of Statistics (INE).

The year-on-year growth in the economy has remained at 3.1%, based upon figures for the third quarter of 2017 – and although the disputed referendum had not taken place by then, the data included are right up to the day before it was held, when State and police intervention was well under way and Catalunya had approved its regional law on independence.

This shows the separatist move has not as yet affected Spain's growth, although the full impact of the referendum and Catalunya's powers being withdrawn through Article 155 of the Spanish Constitution will not be known until the end of December, when the fourth-quarter results are released.

Also during the third quarter (Q3), Spain's GDP grew by 0.8% - less than the 0.9% in the second quarter (Q2), possibly due to Catalunya's current issues, but still showing a 16th consecutive month of increases.

The economy is now showing 10 straight quarters of growth exceeding 3% and 15 consecutive months of overall growth, according to the INE, whose figures match those of the Bank of Spain (pictured) and the ministry for the economy.

And despite Catalunya, the Bank of Spain continues to forecast 'high-level' growth in the economy in the fourth quarter (Q4) of 2017.

The reduced Q3 rise in the GDP has been attributed to a slowdown in job creation and fluctuation net trade income, in contrast to healthy development in both in the spring.

Overall, the Bank of Spain predicts the GDP will have grown by 3.1% over the course of 2017, which mirrors the government's own forecasts.

Read more at thinkSPAIN.com

 



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