Spanish economy slows down

INE announces a slow down in the Spanish Economy

The Spanish National Institute for Statistics has confirmed that GNP went down by 2 decimal points to 3.8% between July and September this year. However, it still comes within the boundaries set by the government for 2007.

According to the institute although the Spanish economy continued growing above the average for the rest of the 27 EU countries and the Euro zone its profile is contrary to other European countries which saw their economies pick up slightly while in Spain it has continued to slow down for 2 consecutive quarters. In the first quarter for 2007 it reached its peak growth for this year so far at 4.1%.

The reasons for this slow down in the economy appear to be less consumer spending which only rose 2.9% – 4 decimal points lower than the previous quarter and investment in the construction industry which only grew by 3.8% – 8 decimal points lower. Within this sector the biggest drop has been the reduction in the construction of housing – 2.

9% compared to 3.7% for the previous quarter.

Investment in companies is also growing less although it remains strong at 11.2%. Industry grew by just 2%. However, this is partly compensated by the fact that exports grew well. Productivity grew 0.8% which places it at the same level as the last quarter.

As far as employment is concerned this continued to grow well – 560,000 full time jobs have been created over the last 12 months.