GDP records fastest expansion since Q3 2023 in Q2

Economy returns to growth: GDP rebounded in the second quarter, expanding 1.7% year on year and contrasting the 0.3% contraction logged in the first quarter. As such, Q2’s figure was the best result since Q3 2023. On a seasonally adjusted quarter-on-quarter basis, economic growth accelerated moderately to 0.4% in Q2 from the previous period's 0.1%.

Domestic demand fuels economic recovery: The upturn reflected improvements in domestic demand compared to the previous period. Household spending declined at a more moderate pace of 0.3% year on year in Q2 compared to a 1.0% contraction in Q1. Moreover, fixed investment growth accelerated to 8.6% in Q2, following the 6.4% increase recorded in the prior quarter. Meanwhile, public consumption expanded 2.0% (Q1: +2.2% yoy). On the external front, exports of goods and services growth hit an over two-year high of 2.3% in the second quarter, rebounding from the first quarter's 1.8% contraction. In addition, imports of goods and services growth sped up to 7.1% in Q2 (Q1: +4.0% yoy).

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