Spanish Q3 GDP increases 0.8% q/q amid political turmoil

The growth rate of Spanish economy decelerated slightly during the third quarter in a sign of resilience to current political turmoil related to Catalonian independence drive.

The GDP in Spain rose 0.8% over the quarter, meeting the market estimates while annual growth rate remained unchanged at 3.1% y/y, the Institute for National Statistics said on Monday. GDP growth rate on quarterly basis decelerated from 0.9% increase during the second quarter.

Spanish growth is yet unaffected by political uncertainty surrounding strive for independence in Catalonia, the economically richest region of Spain. Catalan parliament has declared unilateral independence from Spain after trying for week to conduct political dialogue with Madrid on Friday with Spanish Senate approving administrative takeover of the region hours after the decision.

Massive demonstration was held in Barcelona on Sunday with people demanding unity of the Kingdom under central government rule. 

Spanish government lowered the outlook for economic growth rate last week reporting to the European officials that the GDP is under current uncertainty expected to grow 2.3% next year instead of the 2.6% originally projected.