Economic Resilience: Third Quarter GDP Sees 0.5% Growth Despite Previous Contraction

In a recent release from the Central Statistical Office (GUS), the latest data on the Gross Domestic Product (GDP) for the third quarter of 2023 has been unveiled, showcasing a notable economic rebound. The GDP, not seasonally adjusted and based on constant average annual prices of the previous year, demonstrated a 0.5% year-on-year increase. This positive upturn marks a significant shift from the preceding quarter, which witnessed a 0.6% year-on-year decline.

According to the GUS press release, the seasonally unadjusted GDP, reflecting real-term values, exhibited a 0.5% rise in the third quarter compared to a robust 4.1% surge during the same period in 2022. Furthermore, when considering the seasonally adjusted GDP in constant prices for the reference year 2015, there was a notable 1.5% increase in real terms from the previous quarter and a 0.6% rise compared to the same period last year.

The report also delves into the driving forces behind this economic shift. Domestic demand, a critical factor in economic growth, exerted a noteworthy impact, albeit a negative one, with a contribution of -5.4 percentage points in the third quarter. This contrasts with the previous quarter’s figure of -2.7 points. On the other hand, the influence of investment demand on GDP growth remained positive, albeit slightly reduced, standing at +1.2 percentage points compared to the earlier +1.5 percentage points.

This recent revelation builds upon the initial reading presented two weeks ago, where the Central Statistical Office initially reported a 0.4% year-on-year GDP increase for the third quarter of 2023, contrasting with a 0.6% decline in the previous quarter. The flash estimate suggested that, in real terms, the unadjusted GDP experienced a 0.4% rise compared to the same period in 2022.

In summary, the latest GDP data indicates a resilient economy, showcasing a positive trajectory in the face of previous challenges. The 0.5% year-on-year growth in the third quarter is a testament to the dynamic nature of economic forces and the nation’s ability to adapt and recover.