Spain's economic slump easing

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Spain's economic slump easing

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After two years, Spain’s recession seems to be close to ending.

The latest official reading of the economy showed that between April and June it contracted by just 0.1 percent from the previous three months.

The 0.1 percent drop in output was the smallest since the second quarter of 2011 when the economy started to contract.

Spanish exports are recovering, but domestic demand has remained weak so consumer inflation slowed to 1.5 percent in August – a four-month low.

The economy minister Fernando Jimenez Latorre said there has been “an important turnaround” and in the second half of the year GDP should stabilise or grow by up to 0.2 percent.

The would mean the government being able to meet its target of 1.3 percent contraction for the whole year.

It is still too early for the pick-up to have a big effect on unemployment which Spain’s National Statistics Institute said was at 26.3 percent of the workforce in the second quarter though it has fallen every month for the last five months.