In a statement posted on the website, INE advises that “The gross domestic product (GDP) in real terms in Q3 2021 changed by 4.2% compared to the same period last year.”
In the previous quarter, the change in GDP compared to the same period last year was 16.1%, “the result was largely influenced by the strong impact of the pandemic in the 2nd quarter of 2020.”
“The partial dissipation of this base effect resulted in a positive contribution of domestic demand to annual GDP change, which was lower than calculated in the previous quarter,” says the INE website. “In turn, the contribution of net external demand in the third quarter was slightly more negative, which led to a more pronounced increase in imports of goods and services than exports of goods and services.”
In the third quarter of 2021, “the export deflator and, to a greater extent, the import deflator will show significant growth, mainly related to the dynamics of prices for energy and raw materials, which will extend the observed losses in terms of trade. in the previous quarter ”.
Compared to the 2nd quarter of 2021, “GDP increased by 2.9% in physical terms, with a positive contribution of net external demand to the quarterly change in GDP, which was negative in the 2nd quarter, and a less intense positive contribution of domestic demand in the 3rd quarter of 2021. ”
INE also reports that “GDP growth in the 3rd quarter of 2021 reflects a gradual decrease in the restrictions imposed by the pandemic, following an increase in the rate of COVID-19 vaccinations after two quarters with opposite results: strong GDP contraction in Q1 (-3.3% ), driven by overall content, and a 4.4% increase in Q2, marked by the gradual removal of travel restrictions. “
