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Economy contracted in second quarter: Bank of Spain

Last Updated: Wednesday, July 24, 2013 - 12:41

Madrid: The Spanish economy contracted 0.10 percent in the second quarter of this year, an improvement of 0.40 percent compared to the first quarter, the Bank of Spain said in a report Tuesday.

The economy contracted 1.8 percent on a year-on-year basis, the Bank of Spain Economic Bulletin said.

Spain's rate of economic contraction moderated "significantly" in the April-June period after accelerating in the last few months of 2012, the central bank said.

Exports of goods and services helped stem the decline in the economy in the second quarter.

The decline in consumer spending eased "very slightly" in the second quarter, coming in at -0.60 percent, compared to the -0.70 percent figure posted in the prior three-month period, amid the continuing adverse financial conditions affecting both households and businesses, the Bank of Spain said.

The decline in employment also moderated during the second quarter, with the labour force participation rate dropping 4 percent, an improvement from the 4.5 percent drop in the January-March period, the central bank said.

Inflation is expected to ease "in a significant manner" over the rest of the year from the 2.1 percent rate registered in June, the Bank of Spain said.

Spain has been mired in a deep recession since 2008 due to the financial crisis caused by the bursting of the real estate bubble.


First Published: Wednesday, July 24, 2013 - 12:41
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