European Economic News

Spanish Economy Contracts At Slower Pace In Q2

Spanish recession eased further in the second quarter of 2013, a preliminary report from the statistical office Ine suggested Tuesday.

The gross domestic product contracted 0.1 percent quarter-on-quarter in the second quarter of 2013, slower than a 0.5 percent fall in the first quarter.

The pace of contraction has now eased for a second consecutive quarter. The outcome was in line with economists' expectations.

Year-on-year, GDP fell 1.7 percent in the second quarter, slower than a 2 percent decline reported in the first quarter. Economists had forecast a 1.8 percent drop.

"This result was basically caused by a more negative contribution in the domestic demand, which was compensated partially by a positive contribution of the external demand," the statistical office said.

Another flash estimate from Ine today showed that the harmonized index of consumer prices rose 1.9 percent year-on-year in July as expected. The pace of increase was weaker than a 2.2 percent rise recorded in June.

The consumer price index increased 1.8 percent year-on-year in July, slower than 2.1 percent rise in June. On a monthly basis, the HICP fell 1.1 percent and the CPI decreased 0.5 percent, according to the flash estimate.

by RTTNews Staff Writer

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