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Domestic demand fuels the economy in Q3. GDP continued to grow by 1.6% year-on-year in Q3 in spite of the negative contribution by foreign demand. Behind the good performance of domestic demand lies the growth in consumption, both public and private. At the country level we can see a similar dichotomy between the performance by foreign and domestic demand. Aggregate consumption (private and public) improved its year-on-year growth in Germany (2.3%), Spain (3.3%) and Italy (0.9%), while it slowed up slightly in France (1.4%). Yet, growth in investment slowed up in the euro area (2.2%), although it continued to accelerate in Germany (2.2%), Spain (6.5%) and Italy (0.9%) and stopped hindering growth in France (0.0%). Exports deducted from year-on-year growth although this was due to a larger rise in imports (exports still grew), a natural consequence of the positive tone in domestic demand which is clearly driving the recovery.
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