Catalan economy grew by 0.7% from June 2010 to June 2011

Barcelona (ACN).- The Catalan Gross Domestic Product (GDP) increased by 0.7% during the second quarter of 2011, compared to the same period in 2010, according to data released by the Catalan Institute of Statistics this Monday. The Spanish economy had also grown at the same rate. From the first to the second quarter of 2011, the Catalan economy grew by 0.2%, the same as the European Union’s. However, in the first three months of the year the Catalan economy grew by 1.1% compared to the same period in 2010. In the second quarter of 2011, exports continued to push the Catalan economy, increasing growth by 2.7 percentage points in the second three month period compared to the same time in 2010. This compensated for the fall in internal demand, which dropped by 2%. The spending of public administrations accumulated four consecutive terms decreasing and family consumption shrunk for the first time since December 2009. At the end of 2010, the Catalan GDP represented 209.727 billion euros, a figure much higher than the GDP of Finland, Portugal, Israel, and Ireland. According to date from the FMI, Catalonia’s GDP would be larger than Venezuela’s but smaller than United Arab Emirates’. If Catalonia were an independent nation, it would be the 33^rd or 34^th richest country in the world in nominal GDP (the final ranking position depends on the data's source, i.e. FMI, World Bank, CIA, etc.)

While Catalonia and Spain were growing at 0.7% from June 2010 to June 2010, the European Union was doing it by 1.7%. However, from the first term of 2011 to the second one, both in Catalonia and in the entire European Union the GDP grew by 0.2%.

Exports led the Catalan economy

Exports continue to be the most important sector leading the Catalan economy along the growth path. Exports increased their growth by adding 2.7 percentage points. Exports grew 10.3% between June 2010 and June 2011, and 1.7% from the first to the second quarter of 2011. However, imports only grew by 0.2% over the last 12 months, conditioned by the drop in internal demand. In the first quarter, imports had grown by 6.8%.

However, internal demand fell by 2% from June 2010, to June 2011. This second quarter rate was worse than that of the first term, when internal demand fell by 1% compared to the same period last year. Internal demand takes into account family consumption and spending of public administrations.

Family consumption fell and for the first time since December 2009, it shrunk by 0.6%. Family consumption has been experiencing positive growth results over the last five quarters. This is combined with the decrease in public consumption by 3.3%, accumulating four consecutive quarters of drops. This is due to the public spending cuts in place to reduce the public deficit.

Sector evolution

All economic sectors have grown, except construction. The service sector increased by 1.7% from June 2010 to June 2011. In the same period, agriculture grew by 0.7% and industry by 0.5%. Construction continues to be the economy deadweight and it collapsed by 4.4% over the last 12 months.

Companies do not invest

Corporate investment decreased by 4.8% from June 2010 to June 2011. Corporate investment has been decreasing year on year, over the last 13 consecutive quarters. This rate has not seen positive results since the first quarter of 2008.