MADRID (Reuters) – Spain macroeconomic data seem determined to show that political paralysis in the country with a functioning government since January, is not holding back the momentum a supported private investment economy, household consumption and exports.
the National Statistics Institute (INE) said Thursday that gross domestic product (GDP) grew between April and June 0.8 percent on-quarter, one-tenth more than expected in the advance data, stringing twelve consecutive quarters of growth.
Although public spending fell 1.6 percent between the first and second quarter – the biggest decline in this rate since the first quarter of 2012-, domestic demand and exports supported growth
the investment grew 1.3 percent on-quarter, reaching the tenth consecutive quarter of growth. while household consumption linked the ninth quarter rebound, rising 0.7 percent in a quarter in which employment, National Accounts data, grew 2.9 percent.
as for exports, the net contribution of external demand to the quarterly GDP was 0.2 points.
MILD YEAR SLOWDOWN
in annual data , the economy showed a slight slowdown, with growth of 3.2 percent, two tenths less than the previous quarter, and all components moderating year growth in a context of slight slowdown in the rest of Europe.
Both the employment data as those related to consumption are showing in the last substantial months improvements and the strong momentum of the tourism industry has reduced unemployment to levels not seen since 2010.
Despite the obvious difficulties at home and uncertainty linked to the output of the UK from the EU, the caretaker government does not give up his optimism and has revised upward its growth projections for this year to the edge of three percent confirming the out of the recession that began three years ago.
But with the fiscal targets far from the commitments, the difficulties not only to form a government but to even try to pass a budget can significantly damage the medium-term expectations while among citizens disrepute and fatigue can take its toll on a third hypothetical election in a year.
After the first elections in December that threw the most diverse parliament in the history of democracy in Spain, the political parties were unable to bring positions for a government in coalition or minority and the Spaniards returned to the polls on June 26.
No major differences in the results, parliamentarians are still trying to reach agreements that avoid a third historic elections. Acting president and leader of the largest party, Mariano Rajoy, will try next week a process investiture guess failed by a predictable majority of votes against.
Under the threat of a new election date the 25 December, some analysts and media speculated a possible second attempt investiture of Rajoy with guarantees of success once held the elections in the Basque Country and Galicia planned for September 25
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