In Q3 2021, domestic consumption surged by 8.3%, a stark contrast to the 6.5% decline witnessed in the equivalent period of 2020. This robust increase, according to the HCP, added 8.8 percentage points to the nation’s economic expansion, reversing a previous 7-point negative impact.
Household spending rose 5.8%, a significant improvement over the 5.7% decrease observed previously, contributing 3.2 points to growth—a considerable turnaround from the earlier 3.1-point negative contribution. Government consumption also increased, climbing 5.2% compared to the earlier 3.7%, adding 1.1 points to growth, up from 0.7 point.
Overall investment (both fixed capital formation and inventory changes) saw a substantial upswing of 15.1%—a remarkable shift from the 13.9% drop in the prior year’s corresponding quarter. This contributed 4.5 percentage points to growth, compared to a 4.6-point negative contribution in the previous year.
Conversely, the HCP points out that net foreign trade negatively impacted growth, subtracting 1.1 points—a downturn from the 0.3-point positive contribution of the prior year’s equivalent period.
Import activity increased by 13.4% in Q3 2021, a considerable improvement over the 11.7% drop observed previously; this added a negative 5.7 points to growth, unlike the positive 5.6 points of the previous year. Exports, conversely, climbed 13%, significantly higher than the 13.3% decrease observed in the similar period of the previous year, contributing 4.7 points to growth versus a prior negative contribution of 5.3 points.
The HCP also highlights that gross investment attained 30.4% of GDP, a jump from 26.7% in the same quarter of the previous year. This meant the nation’s financing requirement decreased marginally, falling from 0.9% to 0.5% of GDP.
