Press Release 13/11/2013
The GDP of the Basque Country registered a 1.1% year-on-year fall in the third quarter of 2013
No variation was registered in terms of the previous quarter (0.0%)
In the third quarter of 2013, the GDP of the Basque Country registered a negative year-on-year rate of 1.1%, an improvement of four tenths on the previous quarter. according to data drawn up by EUSTAT. This figure was an improvement of one-tenth on the downturn in the Spanish economy, which fell by a rate of 1.2%, in accordance with the advanced estimation prepared by the INE [Spanish National Statistics Institute].
In terms of the previous quarter, the GDP of the Basque Country registered no variation in the third quarter (0.0%). This quarter-on-quarter variation was one tenth lower than the variation registered by the Spanish economy as a whole (0.1%).
From the point of view of supply, the year-on-year decrease in GDP is the result of the negative performance of the four large activity sectors. Both the Primary and the Industry sectors and, especially, the Construction sector saw downturns in their activity levels. The same occurred in the Services sector, where falls were registered in all services, with the exception of the primary sector, although more moderate than the falls observed in the previous quarter.
The Primary sector registered a year-on-year fall of 1.8%, which, in turn, led to quarter-on-quarter growth of 25%.
For the eighth consecutive quarter, the Industrial sector posted a negative performance in year-on-year terms (-1.9%), and, as was the case in the previous quarter, a month-on-month positive performance of 0.1%. This month-on-month positive figure was combined with a moderation of eight tenths in the year-on-year fall.
The Construction sector moderated its contraction, both in year-on-year and quarter-on-quarter terms. The annual rate fell by 5.2%, 1.4 percent less than the previous quarter, whilst the quarter-on-quarter rate fell by 0.2%.
Global activity within the Services sector recorded the same degree of descent in both quarter-on-quarter and year-on-year terms: 0.4%.
As was the case in the previous quarter, in year-on-year terms, two of the three sub-sectors into which the services sector is divided presented negative variation rates, whilst the third remained unchanged.
In year-on-year terms the most significant decrease in the activity level of the services sector occurred within the Trade, Hotel Management & Catering and Transport branch, with a negative rate of 1.4%, whilst the Public Administration, Education, Health and Social Services branch registered a year-on-year negative evolution of 0.1%. The so-called Other Services sub-sector, which takes in, amongst others, professional services, financial services and insurance, underwent no variation.
In quarter-on-quarter terms, the only growth was registered within the Public Administration, Education, Health and Social Services branch, with a rise of 0.2%. Both the Trade, Hotel Management & Catering and Transport sector and the Other Services sector recorded negative rates: 0.7% and 0.5%, respectively.
The aggregated performance by sector has given rise to a negative evolution of Added Value of -1.1% in year-on-year terms and of -0.1% in quarter-on-quarter terms. The year-on-year variation moderated its downward trend by five tenths, compared to that produced in the second quarter of 2013. Quarter-on-quarter variation recorded the same rate of descent marked in the previous quarter.
From the perspective of Demand, once again concurring with the previous quarter, we witness a combination of the negative evolution of Internal Demand and the dynamism of the foreign sector, giving rise to a positive contribution to the GDP. Both year-on-year and quarter-on-quarter evolution of exportation levels and the importation of goods and services proved positive.
Household Final Consumption Expenditure (Private Consumption) again displayed the profile of deceleration observed in previous quarters, presenting a decrease of 1.3% with regards to the same quarter of the previous year. This fall is four tenths less than that recorded for the previous quarter. In quarter-on-quarter terms, the variation rate was also negative, compared to a decrease of 0.0% in the previous quarter.
Public Consumption (Final Consumption Expenditure of Public Administrations) Here, the negative rates continue, although at a more moderate level than those recorded in the second quarter. The year-on-year rate fell by 1.1%, whilst the quarter-on-quarter rate fell by 0.3%.
The overall performance of the Final Consumption Expenditure of Public Administrations combined with the Final Consumption Expenditure of Households led to a drop of 1.3% in Final Consumption Expenditure. With regards to the previous quarter there was growth of 0.3%.
Gross Capital Formation (Investment) again decreased in year-on-year terms (-3.8%) although in a slightly more restrained manner than in the previous quarter (-4.0%). This moderation in the rate of the year-on-year fall gives rise to quarter-on-quarter growth of 0.6%. The two components of Gross Capital Formation, both that linked to equipment goods and the rest linked to construction, posted negative year-on-year rates. In quarter-on-quarter terms, the evolution of investment in construction (0.9%) was better than investment linked to equipment goods (0.0%).
Internal Demand, composed of Final Consumption Expenditure and Gross Capital Formation, maintained its degree of contraction when compared to the same quarter of the previous year. In year-on-year terms the downturn observed in this quarter stood at 1.8%, identical to the fall recorded in the previous quarter.
The contribution of the Foreign Sector to GDP evolution was again positive. The comparatively better evolution of the foreign balance in relation to the evolution of internal demand occurs with year-on-year positive performance of 5.5% within exports of goods and services, compared to growth in imports of 4.0%.
The evolution of the GDP generated a new drop in the employment level, measured in Full-Time Equivalent Jobs. The fall in employment in year-on-year terms was recorded as 2.0%, whilst in quarter-on-quarter terms, a descent of 0.3% was registered.
The fall in employments levels takes in all branches of activity and occurs in both year-on-year and quarter-on-quarter terms. The primary sector fell by 4.3% and 1.2%, respectively. Industry continued to moderate its year-on-year rate of decline with a drop of 4.0%, also falling by 0.3% in relation to the previous quarter. Employment within the Construction sector presented a profile with sharper declines than Industry, similar to the performance registered in the previous quarter. The Services sector saw its eighth consecutive year-on-year decrease, with a drop of 0.5%. In quarter-on-quarter terms, we once again witness negative rates, with a descent in the level of employment of 0.3%.
In terms of the evolution of GDP by Province, in year-on-year terms Álava showed the largest downturn with 1.3%, followed by Bizkaia and Gipuzkoa, where each registered a fall of 1.0%. In quarter-on-quarter terms, Álava and Bizkaia fell by 0.3% and 0.1%, respectively, whilst Gipuzkoa grew by 0.3%.
For further information:
Eustat - Euskal Estatistika Erakundea / Instituto Vasco de Estadística
C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz
Press Service: firstname.lastname@example.org Tlf: 945 01 75 62
More press releases on the CET - Quarterly Economic Accounts of the Basque Country
Quarterly Economic Accounts of the Basque Country databank