Press Release 29/11/2017
The GDP of the Basque Country registered 3.0% year-on-year growth in the third quarter of 2017
Employment showed a year-on-year growth of 2.1%, with positive contributions in all branches of activity
The GDP of the Basque Country posted growth of 3.0% in the third quarter of 2017, compared to the same quarter of the previous year, according to Eustat data. With regards to the second quarter of 2017, the variation was 0.7%.
The year-on-year figure for the third quarter was one tenth higher than the figure obtained for Advance Quarterly Accounts for 27 October, whereas the quarter-on-quarter figure was the same.
From the point of view of supply, the year-on-year growth in GDP during the third quarter of 2017 has resulted from the positive performance of all activity sectors, except the Primary sector. Industry and Construction grew at a higher rate compared to the previous quarter, whereas Services maintained slightly more moderate activity.
In this quarter, the Industry sector had a year-on-year growth rate of 2.7%, which was four tenths higher than in the second quarter. This figure for the year-on-year performance shows a growth of one point eight percentage points in quarter-on-quarter terms. Manufacturing Industry registered a more moderate performance both in yearly (2.5%) and quarterly (1.4%) terms.
The annual growth rate of the Construction sector accelerated and reached a rate of 3.0%, which meant one point one percentage points more than in the second quarter and a quarterly growth of 0.9%.
Global activity within the Services sector recorded a positive variation of 3.1% in yearly terms, whilst the quarterly rate remained practically unchanged. This growth is the result of the positive performances of the sub-sectors, though to different extents: the Trade, Hotel Management & Catering and Transport branch grew at a rate of 3.8%, once again the highest growth of all sub-sectors. In second place was the Other Services sector, which includes, amongst others, professional, finance and insurance activities, which posted an increase of 3.0%. Finally, the branch of Public Administration, Education, Health and Social Services grew by 2.6%.
Once again, the quarter-on-quarter rate in the branch of Trade, Hotel Management & Catering and Transport registered the highest growth, with 0.4%, followed by the branch of Other Services, which was up by 0.2%. The branch Public Administration, Education, Health and Social Services registered a negative quarterly rate of -0.6%.
The aggregated performance by sector has given rise to an upturn in Value Added of 3.0%, one tenth higher than in the second quarter of 2017. There was also a 0.5% rise in the quarter-on-quarter rate.
From the point of view of demand, two factors determine the overall performance of GDP On the on hand, Internal Demand continued to perform positively, with a growth rate of 3.1% Its two components (Final Consumption Expenditure and Gross Capital Formation) both performed positively, with slightly higher annual rates than in the previous quarter.
On the other hand, the external sector performance registered an increase of 3.7% for exports, compared to 3.9% for imports, which means that the foreign sector has removed one tenth of GDP growth.
Final Consumption Expenditure of Households (Private Consumption) maintained its growth profile measured as an annual rate. Growth in this quarter was 3.0%, identical the previous quarter. The quarter-on-quarter rate was 0.3%, lower than in the second quarter.
Public Consumption (Final Consumption Expenditure of Public Administrations) grew by 2.7% in year-on-year terms, even more noticeable than in the previous quarter, which gave rise to a quarterly increase (0.4%).
The overall performance of the Final Consumption Expenditure of Public Administrations combined with the Final Consumption Expenditure of Households led to an upturn of 2.9% in Final Consumption Expenditure. With regards to the previous quarter there was an upturn of 0.3%.
Gross Capital Formation (Investment) registered annual growth of 3.9%, which is seven tenths higher than the figure recorded in the previous quarter.
Once again this overall performance of investment was based on two trends of different intensity. The variation of investment in capital goods showed a positive trend, with a year-on-year growth rate of 4.5%, a lower figure than the annual rate achieved in the second quarter This annual rate gave rise to a quarter-on-quarter rise of 2.0% The rest of Gross Capital Formation, which is more closely related to the performance of the construction sector, had a year-on-year variation of 3.5%, one point six percentage points more than the annual rate in the previous quarter.
Based on these performances, Internal Demand as a whole registered an increase of 3.1%.
Regarding variation in GDP by Province, Bizkaia showed the largest growth in year-on-year terms, at 3.1%, while Álava and Gipuzkoa both grew by 2.8%. In quarter-on-quarter terms Gipuzkoa was up by 0.9%, Álava by 0.7% and Bizkaia by 0.6%.
As regards the level of employment (measured in Full-Time Equivalent Jobs), there was an overall increase in the level of employment of 2.1% in year-on-year terms, the fourth year with the positive rates that started in 2014. This year-on-year rate means a 0.3% growth with respect to the second quarter of 2017.
Employment levels performed positively in relation to the same quarter of the previous year in all sectors of activity. As in previous quarters, the Services sector stood out due to its volume and intensity, and posted a year-on-year increase of 2.3%.
The industry and construction sectors grew at an annual rate of 1.7% and 1.5%, respectively. There was a 2.8% rise in the year-on-year rate in the Primary sector, though its absolute figures were considerably more moderate.
For further information:
Eustat - Euskal Estatistika Erakundea / Instituto Vasco de Estadística
C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz
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