GDP posts 8% quarterly advance in Q3

Quarterly growth in July-September will amount to 8%, a National Bank report estimates, as the recovery of economic activity, mainly in July and August, was strong. This is primarily attributed to the considerable rebound in domestic demand and exports, although there was a slowdown in late August.

The third quarter will record a slump of 8.4% on an annual basis, which will bring the total contraction of the economy in the first nine months of the year to 8%. This is in line with the bank’s overall estimate for the year’s gross domestic product decline, that remains unchanged at 7.5%.

According to provisional estimates based on various indexes, GDP expanded by 6% in July and 4.7% in August on a month-on-month basis. The 8% quarterly rise follows the 14% contraction in the second quarter compared to the first. The contribution of tourism proved significant in July and especially in August, with air arrivals showing their reduction was contained.