Bank of Spain projects national growth to slow in Q2

The Spanish economy is expected to witness a slowdown in the second quarter of this year in terms of growth, as predicted by the Bank of Spain Tuesday. It expected the Spainish growth to have eased, and that it was still too early to say how Britain's vote to leave the European Union would impact the global economy.

Gross domestic product (GDP) in the period from April to June was estimated have grown 0.7 percent, compared to 0.8 percent in the first quarter, the Bank of Spain said in its monthly report. Separate official data showed retail sales in May rose at their lowest rate in five months, adding to signs of a possible slowdown.

"The most recent information available continues to point to robust growth of activity," the Bank of Spain said in its latest monthly report. Official preliminary GDP data will be published by the National Statistics Institute July 29.

The central bank also mentioned that it is very difficult to assess the long-term impact of last Thursday’s Brexit win, right now. Britain's vote to leave caused a global market rout and pushed the pound to its lowest level in 31 years.

Meanwhile, a new election on Sunday produced similar results to that seen in December, though a slightly stronger showing for the acting People's Party (PP) is fuelling hopes a deal on a new government can be reached, reports confirmed.