The numbers revise upward the quick estimate released on July 29 by INE, which pointed to GDP growth in the second quarter of 6.9% year-on-year and a contraction of 0.2% quarter-on-quarter.

According to INE, these preliminary estimates for the second quarter of 2022 reflect, in the year-on-year comparison, "partly a base effect, given that in the first quarter of 2021 several measures were in place to fight the pandemic that conditioned economic activity.

Year-on-year GDP growth of 7.1%

The preliminary estimates advanced today "point to a year-on-year change in GDP of 7.1% in real terms in the second quarter of 2022, an upward revision of 0.2 percentage points from the flash estimate, which compares with rates of 11.8% in the previous quarter and 16.5% in the second quarter of 2021.

The institute notes that "the deceleration in GDP year-on-year partly reflects a base effect, given that in the first quarter of 2021 several measures were in place to combat the pandemic which conditioned economic activity.

In nominal terms, GDP registered a year-on-year growth of 11.1% (12.5% in the previous quarter and 15.5% in the second quarter of 2021). The implicit GDP deflator "accelerated significantly" in the second quarter, to a year-on-year rate of change of 3.7% (0.7% in the previous quarter).

According to INE, the contribution of domestic demand to the year-on-year variation in GDP "decreased in the second quarter, from 10.0 percentage points to 3.7 percentage points, with a less marked growth in private consumption and investment.

The positive contribution of net external demand to the year-on-year change in GDP rose to 3.5 percentage points (1.7 percentage points in the previous quarter), "as a result of a sharper acceleration in exports of goods and services than in imports of goods and services.

"In the second quarter, the prices implicit in international trade flows increased significantly, with a greater acceleration in exports due to the services components, determining a less intense loss in terms of trade than in the previous quarter," says INE.

According to the institute, "the effect of the evolution in terms of trade combined with the positive behavior in volume resulted in an improvement in the external balance of goods and services in nominal terms, standing at -2.2% of GDP (-3.6% of GDP in the first quarter).

In an analysis by components of domestic demand, in real terms, the deceleration of private consumption (including Non-Profit Institutions Serving Households), to a year-on-year change of 4.2% (12.2% in the previous quarter), stands out in the second quarter.