GDP generated by the economic activity of the A.C. of the Basque Country underwent real growth of 2.6% in the second quarter of 2008, in relation to the same period of 2007, according to EUSTAT data.

This growth rate of 2.6% bettered by point eight per cent that obtained by the Spanish economy (1.8%), by one point that estimated for the EU-27 (1.6%) and by point four per cent that of the USA (2.2%).

The inter-monthly growth in Basque GDP in the second quarter compared to the first one of 2008 came to 0.3%. This inter-monthly variation was 0.1% for the Spanish economy, a negative one of point one per cent for the European Union-27 average and one of 0.8% for the economy of the USA.

Graph 1. GDP m/p. Inter-annual growth rates. (%)

Data corrected for seasonal and calendar effects.

Source: Quarterly Economic Accounts, Eustat. State data: INE. EU-27, Euro Zone -15 and USA data: Eurostat.

From the perspective of the supply sectors, both the primary sector and industry as well as construction obtained below-average growth, while services was the one that obtained higher growth.

The Industrial Sector, with an inter-annual rate of 1.4%, grew point four percent less than in the previous sector, although it was, following services, the sector to show the greatest dynamism.

The Construction Sector, following years in which average growth obtained was higher that the growth of GDP, broke this trend for the third quarter running with growth of 1.1%. In this sector the adjustment was more marked than in the industrial one, with a fall of one per cent and point three per cent as regards the preceding quarter.

The Services Sector showed a more positive rate than that of GDP, with global growth of 3.4%, although with it there were differing performances. Market Services achieved inter-annual growth of 2.7%, a similar rate to the growth of GDP. As for Non-Market Services, they maintained their high growth rate, with an identical inter-annual increase to the previous quarter of 6.5%.

The inter-annual growth rate of the Primary Sector decreased by point two per cent with a positive performance by the agricultural sub-sector but negative evolution of the fishing sub-sector.

Chart 1. GDP m/p. Supply. Chain volume indices. Inter-annual growth rates (*). A.C. of the Basque Country

(*) Data corrected for seasonal and calendar effects.

Source: Quarterly Economic Accounts. Eustat

On the side of Demand, the most significant points were the contraction of Internal Demand by point five per cent, to an inter-annual 2.5%, along with a positive contribution by the external balance. This was the second quarter running that this had occurred, with exports (9.0%) growing at a greater level than imports (8,2%).

If analysed by components, Household Final Consumption Expenditure (Private Consumption) registered a growth rate of 1.4% with a reduction of one percentage point in relation to the previous quarter, where the variable of internal demand showed the pattern with the least momentum.

Final Consumption Expenditure by Public Administrations (Public Consumption), under the protection of public spending on goods and services registered 5.6% growth, slightly raising growth as regards the previous quarter.

Chart 2. GDP m/p. Demand. Chain volume indices. Inter-annual growth rates (*). A.C. of the Basque Country

(*) Data corrected for seasonal and calendar effects.

Source: Quarterly Economic Accounts. Eustat

For Gross Capital Formation (Investment) the growth rates remained practically unchanged from the previous quarter (3.2%), higher than GDP.

Total exports saw growth of 9.0% and total imports an increase of 8.2%, which definitively showed a positive contribution of our external balance to the growth of the economy. Most notable was the increase of exports of goods abroad which accelerated, going from 11.0% of growth in the first quarter of 2008 to 17.4% in this second quarter of the year.

The number of Employed personnel grew by 1.1% in relation to the second quarter of 2007, growing by 0.1% compared to the figures of the previous quarter, creating a thousand jobs with regard to the preceding quarter and almost 12,000 in the last year.

Both the primary sector, industry and the services sector maintained positive inter-annual and inter-monthly growth rates, with construction being the only branch that showed a net loss of employment.

As regards the evolution of GDP by province, growth in the second quarter of 2008 was highly consistent, with very similar inter-annual growth rates in all of them, 2.5% in Álava and 2.6% in Bizkaia and in Gipuzkoa.

Following the protocols for updating currently used in the Eustat system of economic accounts, the structural statistics for 2006 and 2007 have been incorporated into the information system, meaning that the estimations of the GDP data for these years has been revised. The revision shows that in both years the estimations of the evolution of Basque GDP improve point two per cent each year, with the latest estimations of growth being 4.4% for 2006 and 4.1% for 2007.