Catalan economy sees moderate growth in third quarter

The Catalan economy grew by 0.1% in the third quarter of the year compared to the previous quarter, according to data released on Friday by the Catalan Statistics Institute (Idescat).

Q3 saw Catalan GDP growth slow down three-tenths of a percentage point less than in the previous quarter.

Compared to last year, the economy has grown by 2.1%, a rate identical to the previous quarter.

All sectors have increased activity except for agriculture which decreased by 8.2%.

Third-quarter growth in Catalonia was two tenths below Spain (0.3%) and equal to that recorded in the EU-27 (0.1%). 

Growth slowing 

Growth has slowed during the year. The Catalan economy grew by 1.4% in the first quarter and by 0.4% in the second quarter. 

The Catalan government highlighted the "positive" development of GDP in a statement on Friday. It pointed to the context of weakness in the euro zone economies, the sharp rise in interest rates, and ongoing inflation. 

There will be "significant risks" to the economic situation going forward, the government said, due to the effects of monetary policy, and geopolitical tensions, aggravated by the war in the Middle East. 

Services grow, agriculture shrinks 

By sector, year-on-year growth of 2.9% in services stands out, two tenths more than in the previous quarter, thanks to lively retail trade, motor vehicle sales, IT services, architecture, and legal services, according to Idescat. In a statement, the Department of Economy highlighted the "resilience" of the service sector. 

Industry grew by 1.3% year-on-year, three tenths more than between April and June. Construction, despite increasing by 3.6%, moderated its growth by a tenth compared to the previous quarter. 

In contrast, the agriculture sector shrunk by 8.2% compared to last year, mainly due to the ongoing drought, and has now experienced eight quarters in a row of declining figures.