The economy grew by 5.3% in the second quarter and achieved the best performance since 2012

Gross domestic product (GDP) recorded growth of 5.3% in the second quarter compared to the same period last year, recording its best performance since the third quarter of 2012, while the first quarter expansion was corrected with Increase by 0.2 percentage point to 4.3%, the Central Bank reported Monday.

The figure was slightly above the expectations of analysts who expected a growth of 5.2% for the economy in the period April – June.

With two working days more than in the second quarter of 2017, the calendar effect was 0.2 percentage points.

During the period, investments continued to increase significantly with an increase in gross fixed capital formation of 7.1%.

From the perspective of origin, increases were observed in all activities, with an emphasis on the incidence of the processing industry and trade and, to a lesser extent, personal and business services. Meanwhile, agricultural forestry and fishing activities proved to be jumping for their dynamism.

On the other hand, the seasonally adjusted figures showed an increase of 0.7% of GDP compared to the previous quarter.

The highest incidents corresponded to services, partly offset by declines in mining and construction.

From the point of view of expenditure, GDP was driven by domestic demand, partially offset by the decline in net exports.

Domestic demand recorded an increase of 6%, after a growth of 4% in the previous quarter. As at the beginning of the year, domestic demand was determined by the consumption and investment of households. Consumption grew by 4.2%, with expenditure on services and durable goods striking in terms of contribution. On the other hand, the increase in the variation in stocks was a marginally higher incidence than the gross formation of the fixed capital in the increase of the investments.

Foreign trade

As far as foreign trade figures are concerned, net exports decreased during this period due to an increase in imports higher than that of exports. In fact, imports grew 10.0% against 7.5% recorded in exports. The hospitalizations of metal products, machinery and equipment, fuels and chemicals have affected the results of the first.

Meanwhile, exports included the highest loads of copper and industrial goods.

In seasonally adjusted terms, domestic demand grew by 1.8% compared to the previous quarter, driven by household consumption and investments in machinery and equipment. The effect of domestic spending determined the increase in GDP, while net exports had a negative effect, due to an increase in imports and a fall in exports.

Real disposable gross national income grew by 5.5%, after having reached 5.7% in the previous quarter. The result was dominated by the increase in transfers received from abroad, partially offset by higher paid earnings. On the other hand, the effect of the terms of trade was marginal.

Total gross savings amounted to 22.2% of GDP in nominal terms, composed of a national savings rate of 20.2% of GDP and external savings of 2.4% of GDP, corresponding to the current account deficit of the Balance of Payments. On the other hand, GDP growth was corrected by 0.2 percentage points in the first quarter of the year, in line with the national accounts revisions policy.

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