Spanish Q3 growth feels impact of Catalan crisis

Flash estimates of Spain's third-quarter gross domestic product suggested that workdays lost through separatist, and anti-separatist, protests in the region of Catalonia had a slightly negative impact on growth.

Despite the slight slowdown in quarter-on-quarter growth in the July-September period, Spain's contribution to the current eurozone recovery remained in robust shape.

Third-quarter gross domestic product (GDP)

On a quarterly basis, third-quarter GDP rose by 0.8%, slightly slower than in the April-June when the Spanish economy grew at 0.9%.

The annual rate of growth was 3.1%, the same rate of growth seen in the second quarter, according to the country's National Institute of Statistics.

Chart courtesy of Instituto Nacional de Estadistica

Much of the data for the third quarter would have been collected in the period before the constitutional crisis began to prompt Catalonians onto the streets, and it was expected to be more noticeable in the fourth quarter.

Market reaction

There was some strongly positive reaction to the data on Monday. Madrid's Ibex benchmark index rose 1.7% in early trade to 10,366.