BarcelonaHousehold and public administration consumption maintained the growth rate of the Catalan economy in the second quarter at the levels of the last three years, during which it has continuously outperformed the European average. Thus, the Catalan gross domestic product (GDP, the indicator that measures the size of an economy) increased by 3% annually despite the difficulties added by the war in the Middle East, according to data confirmed this Monday by Idescat, the Generalitat’s statistical institute.
Compared to the previous quarter, GDP increased by 0.7%, just as Idescat itself had already advanced in the first estimates published last July.
The strong performance of the Catalan economy—just like the Spanish one—stands out in a context marked by international instability and the consequences of the war in Iran, mainly the closure of the Strait of Hormuz. Among these consequences, the rise in the price of oil and natural gas stands out above all, which has increased production costs for a large part of industry and services, in addition to increasing the cost of living for families.
Furthermore, this growth in activity coincided, during a good part of the quarter, with the Spanish government’s measures to contain the increase in prices. The reduction of some taxes on electricity and gas held back the rising cost of living in April and May, but in June, when the Spanish government lifted the measures, prices started to pick up again.