The Catalan economy slowed its growth in 2019

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The Catalan economy slowed its growth in 2019





© Image LaVanguardia.com
A promotion of new housing in L’Hospitalet 2019/10/16


The gross domestic product of Catalonia (GDP) was 250,597 million euros in the 2019, which represents a growth of 1.9%, six tenths less than the previous year. A lower figure than that registered in the last four years, according to data provided by the Statistical Institute of Catalonia (Idescat).

Furthermore, the Catalan economy grew one tenth less than the estimate made for the Spanish economy -2% – and four tenths above the EU-28 average, 1.5%. The slowdown in activity was more intense in the fourth quarter, when GDP reached a year-on-year increase of 1.3%.

Sectors Industry and construction mainly responsible for the slowdown

The data advanced by Idescat also conclude that the service sector, with an increase of 2.7%, sustained the economic growth of this autonomous community from the point of view of supply. Instead, the industry experienced its first negative variation rate since 2013, standing at -0.3%. This is due, according to the statistical report, “to the progressive deterioration of the international economic environment that has slowed industrial activity in Catalonia in the last 18 months.”

Likewise, the construction It registered a strong deceleration when reducing its growth to 2.3%, after experiencing a very intense bullish cycle during the last four years. Regarding the trend of agricultural sector, This continued in negative as it fell 3.1%.

Demand

Increase in exports

From the point of view of demand, during 2019 household consumption slowed (0.9%), and gross capital formation (3%), which implies that domestic demand grew by 1.6%, nine tenths less than the previous year. An evolution in line with the reduction in the growth of imports of goods and services (1.1%) and contrasts with the increase in exports (3.6%), which were higher than in 2018.

The stoppage of activity as a consequence of the expansion of the coronavirus crisis It will intensify the Catalan economic slowdown, whose GDP could reach negative rates in the coming quarters, according to the evolution of the economy as a result of the pandemic and the measures decreed to prevent its spread.

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