Bank of Spain Says Country's Economy May Have Weakened in Third Quarter

Spain’s economy may have deteriorated in the third quarter as stimulus measures came to an end, the Bank of Spain said.

The data available for July and August suggest “activity may have weakened,” the Bank of Spain said in its monthly bulletin in Madrid today. The end of car-purchase incentives over the summer and a value-added tax increase that encouraged consumers to make purchases before the July 1 start date contributed to the slowdown, the central bank said.

Spain’s economy emerged from an almost two-year recession in the first half of the year, growing 0.1 percent in the first quarter and 0.2 percent in the second. Finance Minister Elena Salgado has said she doesn’t expect any negative quarters this year, even as she forecasts a full-year contraction of 0.3 percent.

To contact the reporter on this story: Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net

To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net

• LinkedIn
• Google +1
• Print
• QUEUE