Spain’s economy expanded by 0.3% in the third quarter, according to revised figures released on Friday. The National Institute of Statistics, INE, confirms the trend noted at the end of October, showing a slower pace for production activity in 2023 after advances of 0.6% and 0.4% in the two prior quarters. This latest update helps anchor expectations for the year ahead and provides a clearer picture of the seasonal dynamics affecting Spanish growth.
According to the Quarterly National Accounts from INE, the rate stood at 1.8% in the third quarter, edging down from 2.0% in the preceding quarter. The data highlight a cooling within the broader growth trajectory, reflecting changes across sectors and a shift in domestic demand as the year progressed. The slowdown in quarter-on-quarter growth aligns with the modest gains seen in other indicators, underscoring the challenges for the economy in maintaining momentum through the latter part of the year.
Hours worked within the economy rose by 0.1% from one quarter to the next. The figure is notably higher when measured in full time equivalent terms, where employment advanced by 2.4% in the same period, an increase of 2.0 percentage points compared with the second quarter. At the same time, the average hours worked per employee decreased by 2.3%. The mixed pattern suggests a shift towards more intensive employment in sectors with longer hours rather than a broad rise in total hours across all industries.
On a yearly basis, hours worked recorded a 1.9% gain, a modest improvement relative to the second quarter of 2023. Full-time equivalent jobs rose by 3.5%, up 0.4 percentage points from the prior quarter, signaling a solid year‑over‑year contribution from core labor markets. In concrete terms, this corresponds to the addition of roughly 678,000 full-time equivalent positions over the course of the year, reflecting a substantial employment uplift even as other indicators show tighter growth conditions.
The interannual change in unit labor cost reached 6.5% in this quarter, signaling rising labor efficiency pressures and the distribution of wage developments across industries. Gross national income and gross national disposable income advanced by 0.7% and 0.6% respectively compared with the previous quarter, indicating steady, though not explosive, gains in national income accounts as the economy transitions through the year. These dynamics contribute to a broader understanding of how Spain is balancing output growth with cost pressures and household purchasing power.
Compared with the third quarter of 2022, national income rose by 6.7% and national disposable income increased by 6.9%, highlighting a positive annual comparison despite slower quarterly growth. The annual gains reflect accumulating domestic demand, evolving productivity patterns, and a resilient job market that supports household consumption and investment through the backdrop of ongoing macroeconomic adjustments. Analysts continue to monitor how structural reforms and external demand will shape the trajectory for the rest of the year and into 2024, noting that the calibration of growth now rests on a combination of more efficient production, favorable financing terms, and sustained employment gains. This evolving picture emphasizes the importance of policy clarity and business confidence in sustaining a gradual, steady expansion as Spain navigates periodical headwinds in the global economy.