That compares with a 0.3% contraction in gross domestic product (GDP) in the first three months of the year.
Spain's borrowing costs over 10 years hit a record high of 7.5% last week on fears that it may find it difficult to repay its international debts.
Euro group leader Claude Juncker has called for the European Central Bank to act to reduce Spain's borrowing costs
ECB president Mario Draghi is meeting the US Treasury Secretary Timothy Geithner for talks on Monday .
On Thursday, the ECB will announce its latest decision on interest rates and there is also increasing speculation that it may also announce that it is restarting its bond-buying programme, known as the Securities Markets Programme (SMP).
Under the SMP, the ECB buys government debt from banks on the commercial market, which helps to bring down the cost of borrowing for governments without the ECB having to lend directly to them.
The SMP was suspended at the end of January.
No comments:
Post a Comment