The Catalan economy has seen fourteen straight quarters of year-on-year growth of greater than 3%. According to the preliminary report from Idescat and the Catalan economy ministry, the Catalan economy grew 3.1% with respect to the same period last year and 0.7% over the previous quarter. The main driver of this growth has been the tertiary sector.
That said, the first six months of 2018 saw a slight slowdown in year-on-year GDP growth. This is in line with the main indicators for the economies of Spain and the Eurozone. Among the causes, according to the department, are increasing protectionist tensions, less expansive monetary policies and the increase in oil prices.
As such, the Catalan economy is maintaining the "pattern of balanced growth" it has achieved since the 2007 financial crash, as vice-president and economy minister Pere Aragonès explained in his presentation of the annual report on the Catalan economy for 2017. This includes positive contributions from all the great productive sectors. Aragonès's ministry says that the Catalan economy has exited the crash "strengthened", achieving a "more stable" recovery.
Among the sectors seeing the greatest progress, industry stands out, again proving a "fundamental engine" this second quarter, with 4.4% year-on-year growth. This positive trend is seen in most areas of production, especially metallurgy, extractive industries and textiles.
Services, growing
The service sector, the most important overall for the Catalan economy, has grown 2.5% year-on-year. All the main indicators are showing positive development, with very dynamic performance from administration and professional, scientific and technical activities.
In terms of tourism, a slight year-on-year decrease in the number of visitors from abroad was recorded until May (-2.1%), but spending by tourists grew 6.7%. The stronger increase in tourist spending, continuing a trend from 2017 (10.0%), suggests an evolving tourist market, but its development in quarters to come will have to be monitored.
Labour market
According to the market, "the good performance of the Catalan economy during the second quarter translates directly to the labour market", with notable increases in Social Security signups (3.1%) and employment (2.7%) according to the Enquesta de Població Activa (Active Population Survey, link in Catalan). In turn, unemployment has reduced to 11.4%, the lowest level since the end of 2008.