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Consumption in the first half of September grows 18.6% against the same period in 2019, showing a better dynamic than that observed in August, when it grew 11.2%. Goods recorded a growth of 34.0% compared to 2019. Meanwhile, services are still 2.8% below their pre-pandemic level.
September 15, 2021
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The August real economic indicators further confirmed a continuing deceleration growth amid the recent regulation storms as well as the Delta variant virus flare-ups in mainland China as industrial production, retail sales and fixed asset investment all tumbled.
Consumption in August grew 11.2% compared to the same period in 2019, lower than the maximum observed since the beginning of the pandemic recorded last July (17.6%). In the month, a generalized lower dynamic was observed in the different consumption categories, although with greater emphasis on the goods groups.
In August, the BBVA Consumption Index fell (-)1.9% MaM (sa), which adds to the low growth of July (0.4%), pointing to a slowdown in pent-up demand in 2H21.
Consumption so far in August is 16.2% above that recorded in the same period in 2019, slightly lower than that observed in July (17.6%). Services would be reflecting lower dynamics in the month with a contraction of 3.3% compared to 2019 while goods grew 29.8%.
In the second quarter, GDP grew by 17.6% year-on-year. The low statistical base boosted the result, while resilience was maintained despite logistical problems stemming from the protests. GDP fell 2.4% quarter-on-quarter, with negative results in April and May and a rebound in June.
The July real economic indicators further confirmed a continuing moderated growth momentum amid the recent regulation storms as well as the Delta variant virus flare-ups in mainland China.
Consumption in July was 17.6% above that recorded in the same period in 2019, the highest record since the beginning of the pandemic. While goods had a good dynamic, especially those related to health and food, it was services that drove consumption in the month.