Catalan economy shows 0.5% growth in the third quarter, accumulating a year and a half of growth

Barcelona (ACN).- The Catalan economy grew by 0.5% in the third quarter of 2014, the last in six consecutive quarters of positive growth, according to official data released onThursday by the Catalan Ministry of Economics and Statistical Institute of Catalonia (Idescat). The whole of Spain also grew by 0.5% in the same 3 months. In annual terms, Catalonia's GDP has grown by 1.8%, mainly thanks to the boost by the services sector, which has demonstrated an annual growth of 2.4%. The sector of industry grew by 1.5% and those of construction and agriculture decreased by -2.6% and -1% respectively. Idescat’s previous predictions for 2014 quarters has been reviewed: the 0.5% initially estimated for the first quarter increased to 0.7%, while the 0.6% for the second quarter dropped to 0.5%. In annual terms, there has been an upward revision from the initial calculation. The annual growth improved, to 1.2%, 1.6% and 1.8% in the first, second and third quarters, respectively. Previously, Idescat and the Catalan Government's Department of Economics had posted an early estimate a 0.9% growth in the first quarter, and 1.2% in the second. Idescat has revised its data for Catalonia’s GDP growth in the first two quarters, so that the growth profile for 2014 shows a more positive first quarter on-quarter terms, followed by a slightly more moderate growth in the two subsequent quarters.

The industry sector

After registering an average growth of 1% in 2013, the industry sector has shown stable annual growth so far this year, 1.5% in the first quarter, and 1.6% in the second, with a slight decline in the third quarter, putting the annual growth at 1.5%. After being heavily impacted by the economic crisis, industrial production in Catalonia has regained strength, and shows growth ahead of leading countries of the Eurozone. By the end of August, the most growth has been recorded in the branches of transport equipment and non-metallic mineral products, with metal production showing a growth above 8%.

The construction sector

While the construction sector has shown a continuing decline in GVA (gross value added: the value generated over a period considered that is obtained from the difference between the production value and intermediate consumption used), this decline has been waning. In quarterly terms, the change was -2.6%, -4.5% and -6.3% in the third, second and first quarters respectively, while the annual average was -6.7%. In terms of housing, positive growth has been noted; prices are rising and the number of mortgages increasing. This has in turn led to a rise in the number of architects commissioned for new housing. In the civil engineering sector, significant changes in the short term are constrained by the lack of public investment, however there has been an increase in the number of official tenders issued, according to a statement released by the Department of the Economy.

The services sector

In annual terms, the services sector has shown steady growth: an increase from 1.5% in the first quarter to 2.4% in the third, according to advance data. This sector has been driven largely by recovery in domestic demand, and tourism demand. The tourism sector has benefited from a surge in the number of foreign visitors (an increase of 6.6% in the first nine months of the year) alongside improved domestic tourism and in that across the whole of Spain. This growth in activity of the services sector has been accompanied by a positive increase in employment.

The agricultural sector

As for agriculture, the sector saw an average growth of 3.7% last year, while this first quarter has increased by 4.3% but fell by -0.1% in the second. In the third quarter, the annual decrease was -1%.