Economy grew 4 pc in Q2

7th August 2007, Comments 0 comments

7 August 2007, MADRID (AP) - The Bank of Spain said Monday the country's gross domestic product grew around 4 percent in the second quarter, according to its latest estimates, compared to 4.1 percent in the first quarter.

7 August 2007

MADRID (AP) - The Bank of Spain said Monday the country's gross domestic product grew around 4 percent in the second quarter, according to its latest estimates, compared to 4.1 percent in the first quarter.

In its July-August economic bulletin, the Spanish central bank said household consumption and investment in the construction sector is continuing to slow down. But to some extent this is offset by a smaller trade deficit and resilient investment in other areas of the economy, the bank said.

The National Statistics Institute plans to release its first estimate of second-quarter GDP growth on 14 August and a more detailed breakdown of the data on 29 August.

The Bank of Spain said investment in construction, the main engine behind the country's longest-running economic boom in recent history, grew around 5 percent in the second quarter, amid a rapid slowdown in the growth of housing prices.

The bank said tax revenue appears to be growing well above expectations, despite tax cuts this year, and this should result in a 2007 budget surplus higher than the 1 percent anticipated by the government.

(Copyright AP 2007)

Subject: Spanish news

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