Final data published by the National Statistics Institute (INE) showed that the economy expanded by 0.8% in the 3rd quarter after similar growth in the 2nd quarter. Economists also expected GDP growth of 0.8%. Meanwhile, in annual terms, GDP growth accelerated to 3.3% from 3.2% in the 2nd quarter. This was the strongest growth since the 1st quarter of 2023. Consensus estimates suggested economic growth of 3.4%.
Domestic demand contributed 1%, while external demand subtracted 0.2%. Household consumption rose by 1.2%, and government spending increased 2.5%, but gross capital formation fell 0.9%. Exports grew 0.4% after a similar increase in the 2nd quarter, while import growth accelerated to 0.9%. All major industries showed positive value-added growth except construction, which contracted 1.5% after. Industrial activity grew 0.2%, with manufacturing nearly stagnant after slowing by 1.6 points. Services growth eased slightly to 1.0%, and primary sectors rebounded with a 1.1% increase.
In its latest forecasts, the IMF predicted Spain would grow by 2.9% this year, one of the highest levels in the EU. Meanwhile, in September, the government revised its 2024 growth forecast up to 2.7% from 2.4%. It has so far not changed its estimates in the wake of the floods.