Spain exits recession at last

Spain edged out of recession in the first quarter of the year, according to the Bank of Spain. The Bank says the GDP rose by 0.1% over the first three months of the year, bringing to an end three quarters of recession. The annual rate remained in recession by 1.3%. The Bank notes an improvement in domestic spending in the last two quarters.

The move away from recession was forecast by some experts, but has come a quarter earlier than expectations in Brussels, but the same experts fear that the country will fall back into recession in the third quarter when the IVA/VAT rises come into effect, with the general rate moving from 16% to 18%.

Spain official entered recession in the last quarter of 2008, after having recorded two consecutive quarters with negative numbers.