During the third quarter of 2020, the year-on-year variation rate of the Spanish GDP stood at -8.72%, which represented a notable increase compared to the previous quarter. Regarding the labor market, the percentage of unemployed over the active population registered an increase compared to the previous quarter, up to a rate of 16.26%. On the other hand, year-on-year employment variation rate stood at -3.51%. As for prices, inflation stood at -0.50%, despite recording a quarterly increase. Regarding the exchange rate, the euro appreciated against the dollar in 3Q20, reaching an average exchange rate of 1.17 $/€.

 


Macroeconomic outlook report: Spain 3Q20

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Macroeconomic overview

  • In 3Q20, the Spanish economy registered a y/y variation rate of -8.72%, which after accelerating by 12.79 p.p. with respect to 2Q20.
  • In 3Q20, the partial recovery of Spanish economic activity was mainly due to the relaxation of the sanitary measures, motivating increases in private consumption, gross fixed capital formation and exports. Domestic demand increased by 11.00 p.p. with respect to the previous quarter, reaching a year-on-year variation rate of -7.83%. In the foreign sector, the external demand recorded an increase of 1.79 p.p., reaching a variation rate of -0.89%, due to a greater increase in exports (21.10 p.p.) than in imports.
  • Regarding the labor market, the unemployment rate stood at a rate of 16.26%, after increasing by 0.93 p.p. compared to 2Q20. On the other hand, in 3Q20, the year-on-year employment variation rate stood at -3.51%, which represented a small recovery (2.54 p.p.) compared to the drop recorded in the previous quarter.
  • Regarding the exchange rate, the euro appreciated against the dollar in 3Q20, reaching an average exchange rate of 1.17 $/€.
  • As for inflation, in 3Q20, CPI growth stood at a negative rate of 0.50%, despite recording a small increase of 0.13 p.p. compared to the previous quarter.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).