In the third quarter of 2020, Gross Domestic Product (GDP) in real terms registered a year-on-year reduction of 5.7%, after the strong contraction of 16.4% in the previous quarter. The less intense reduction of GDP was mainly due to the behaviour of domestic demand, which contributed -4.1 percentage points to the year-on-year rate of change of GDP, significantly less negative than in the previous quarter (-11.8 percentage points). Similarly, the negative contribution (-1.5 percentage points) of net external demand was less pronounced in the third quarter than in the previous quarter (-4.6 percentage points), with a stronger recovery of Exports of Goods and Services than of Imports of Goods and Services, mostly due to the evolution of the exports of goods, since the services component continued to decline markedly.
When compared with the second quarter of 2020, GDP increased by 13.3% in real terms, following the strong contraction observed in the previous quarter (quarter-on-quarter rate of change of -13.9%). This result is also explained, to a large extent, by the considerable positive contribution of domestic demand (10.6 percentage points) to the quarter on quarter rate of change of GDP, after the strongly negative contribution registered in the second quarter (-10.9 percentage points). The contribution of net external demand was also positive (2.7 percentage points), while in the second quarter was very negative (-3.0 percentage points), with Exports of Goods and Services increasing markedly.
These results revise upwards (0.1 percentage points) the rates of change released in the first flash estimate, due to the integration of additional primary information, namely related to the international trade of services.