- Commerzbank
Spain's economy slowed in the third quarter, but remained on track to enjoy the strongest growth since 2007. The Euro zone's fourth biggest economy moderated to 0.8% in the September quarter, according to INE, following the 1% growth in the preceding three-month period. The reading marked the ninth straight quarter of growth. The biggest driver of the quarterly growth was the investment, which climbed 1.1%, followed by a 1.0% increase in household consumption. Exports surged 2.8%, while imports advanced 4.0% quarter-on-quarter.
In the twelve months through September, GDP growth added 3.4%, compared with the second quarter's 3.1% expansion. Last year, the Spanish economy grew 1.4%, while this year the government is predicting a 3.3% GDP growth. Nevertheless, the economy is facing a number of headwinds. The jobless rate in Spain remains the highest in the currency bloc after Greece, while the European Commission warned that Spain is likely to fail to meet the agreed target to bring its budget deficit down to 4.2% of GDP from 5.8% of GDP last year. Moreover, Spaniards are heading to a December 20 general election, in which the current government of Prime Minister Mariano Rajoy is seeking for re-election.
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