Spain’s GDP Grows by 0.8% in the Third Quarter, Driven by Domestic Consumption and Exports

The Spanish National Statistics Institute (INE) announced today that Spain’s Gross Domestic Product (GDP) grew by 0.8% in the third quarter of 2024 compared to the previous quarter.

This increase is attributed to strong domestic consumption and the remarkable performance of exports, solidifying a positive economic outlook.

Domestic Consumption on the Rise

Household spending increased by 1.1% during this period, reflecting improved consumer confidence and higher purchasing power among Spanish families. This boost has significantly benefited key sectors like retail and services, reaffirming the critical role of domestic consumption in the country’s economy.

Exports: A Key Driver

Exports of goods and services grew by an impressive 5.2% compared to the previous quarter. The services sector stood out with a 12.3% increase, driven by the surge in tourism and business services. This growth not only strengthens Spain’s trade balance but also enhances its position in international markets.

Year-on-Year Comparison

Compared to the same quarter last year, Spain’s GDP grew by 3.4%, marking its best performance in the past 18 months. This growth significantly exceeds the OECD average of 1.7%, positioning Spain as one of the most dynamic economies in Europe.

Challenges Ahead

Despite these positive results, the Bank of Spain has warned of potential challenges in the fourth quarter due to climatic events such as the recent DANA, which affected various regions of the country. These events are estimated to potentially reduce GDP growth by up to 0.2 percentage points in the coming months.

Conclusion

The third quarter of 2024 paints an optimistic picture for Spain’s economy, with strong indicators of recovery and growth in key areas. However, the challenge will be to sustain this positive trend amid potential external adversities. Spain continues to position itself as a model of economic resilience within the European context.

What do you think of these figures? Share your comments and join the conversation about Spain’s economic future.