BBVA release their 2nd Qtr predictions

Spain's BBVA today reported how their research over the country's economic uncertainty could continue into the second half of 2010, inspite of slight increases in GDP during the first two quarters. The news follows the negative reports that the IVA increase may have slowed austerity measures and caused a little more uncertainty in the markets. It is thought that this uncertainty could imply a return to negative growth in the third quarter.

BBVA state how the current situation in Spain predicts that the country's GDP would shrink by 0.6 % this year but increase by 0.7 % next year, figures which fall below those of the government, who expect a negative growth of 0.3 % this year and a growth of 1.3 % next year.