Macroeconomic outlook report: Spain

During the third quarter of 2021, the year-on-year rate of change of Spanish GDP stood at 2.67%, registering a notable fall compared to the previous quarter. As for the labour market, the percentage of unemployed in the labour force registered a decrease compared to the previous quarter, falling to a rate of 14.57%. On the other hand, employment registered a rate of variation of 4.45%, despite registering a slight slowdown compared to 2Q21. Inflation grew to a year-on-year rate of 3.40%. Finally, with respect to the exchange rate, the euro depreciated against the dollar in 3Q21, with an average exchange rate of $1.18/€.

Macroeconomic outlook report: Spain 3Q21

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Macroeconomic overview

• In 3Q21, the Spanish economy registered a positive year-on-year variation of 2.67%, although it represented a fall of 14.18 p.p. compared to 2Q21. This slowdown was mainly due to the low comparative rate of the second quarter of 2020, however, advances in the process of vaccination helped maintain a positive growth rate.
• Domestic demand decreased by 15.84 p.p. compared to the previous quarter, standing at a year-on-year rate of change of 1.49%.
• Regarding the labour market, the percentage of unemployed in the active population decreased in the third quarter of the year down to 14.57%, which meant a deceleration of 0.69 p.p. compared to 2Q21. On the other hand, in 3Q21, the year-on-year variation in employment stood at 4.45%, which represented a slight fall (1.27 p.p.) compared to the previous quarter.
• Regarding the exchange rate, the euro depreciated against the dollar in 3Q21, standing at an average exchange rate of $1.18/€.
• As for inflation, in 3Q21, CPI growth stood at a rate of 3.40%, after registering an increase compared to the previous quarter of 0.87 p.p.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).