Spanish Economy Contracts 0.1% in Q2


In the second quarter of 2013, Spain's GDP fell 0.1 percent on a quarterly basis. This rate was four tenths higher than that registered in the previous quarter (-0.5 percent) but marks two years of contraction as weak domestic demand keep weighting down the economy.

In a flash estimate of the quarterly national accounts, the GDP growth rate was reported still negative but up from the rate registered in the previous quarter basically due to a positive contribution of external demand, which was in part offset by a negative contribution of domestic demand. Since the economy slipped into recession in 2008, dire domestic demand has been further hit by tax hikes and spending cuts aimed at balancing the budget. 

On an annual basis the economy shrank by 1.7 percent, stronger than the 2 percent fall in the previous quarter. This rise is partially explained by a stronger tourist season than in the same period of 2012.

Spanish Economy Contracts 0.1% in Q2


INE | Nuno Fontes | nuno@tradingeconomics.com
7/30/2013 8:58:28 AM