Spain’s economy grew estimated 0.7 pct in second quarter

MADRID – Spain’s central bank estimates the economy grew by 0.7 per cent in the second quarter compared with the previous three months, down from 0.8 per cent in the first quarter.

The Bank of Spain said in a report Tuesday the economy was being fueled by increased consumer spending due to improving employment figures.

Spain emerged from recession in late 2013 and is now one of the European Union’s fastest-growing economies although its unemployment rate of 21 per cent remains the EU’s second-highest after Greece.

The country held its second inconclusive election in six months on Sunday, forcing a continuation of the conservative Popular Party’s caretaker government while parties begin negotiations to try to form a new government.

The bank’s figures are provisional, with official ones due July 29 from the National Statistics Office.