The fourth largest European economy contracted .4% more than the first quarter last year and 1% more than last year’s second quarter. August 28 is the date when growth in Spain’s gross domestic product (GDP) will be announced. But the country’s statistics institute—INE—reported the economic comparisons on Monday, July 30.
 
The statistics reported matched estimates for growth by the country’s central bank. Domestic demand is waning and is only being partially offset by external demand. Government officials recently predicted Spain’s economy would continue to contract in 2013, reversing an earlier estimate for moderate growth in the coming year.
 
The most recent economic survey indicates Spain’s economy will experience a significant downturn during the second half of the year. The worsening financial crisis and increasing unemployment along with the focus on austerity has driven Spain’s consumer price index up to 2.2% in July from 1.8% in June.

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