Catalan economy grows by 0.2% in the 4th quarter of 2010

Barcelona (ACN).- The Catalan economy is on a positive track although recovery remains slow. According to the Catalan Ministry for Economy, Catalan GDP grew by 0.2% during October, November and December of 2010. The growth is in relation to the previous quarter (July-September 2010). In annual terms, compared to the 4^th quarter of 2009, the Catalan economy grew by 0.8%. The data from the second semester of 2010 is a bit better than expected. For the entire 2010, GDP fell by 0.2% compared to 2009, a figure that despite being negative is better than initial previsions. Industry has been the Catalan economy’s real engine. Industry grew by 2.5% last year and brings 0.4 points to the GDP. However, the activity improvement has not brought more jobs yet.

The service sector also registered an annual improvement. It grew by1.3%. The main factor has been the dynamism of the tourist industry and the positive trend of internal consumption. The service sector brings an improvement of 0.9 points to the GDP. This sector is thus essential for the recovery.

However, the negative sector is still construction, which is still going through an adjustment process. Its activity fell by 4.5% and it continues to destroy employment. Besides the slowdown in the housing sector, this second term was also negative due to the slow down of the public works’ construction. The reason for this slowdown is due to the measures to cut public expenditure and the deficit, which has provoked a decrease of the economy’s growth.

Agriculture, although it represents a very small part of the Catalan GDP ended 2010 on a positive note. It grew by 0.8% in 2008, with an improvement in cereal, fruit and livestock production.