A report by the Bank of Spain (el Banco de España) has shown that Spain’s GDP (Gross Domestic Product) experienced approximately a 4% growth in the second quarter of 2007.

The report shows that the building industry grew by around 5%, while the price of housing has fallen sharply.

In terms of the future, the Banco de España believes that household consumption and also investments in the building industry are slowing down but that these decreases will be balanced by decreased trade defecit and strong investment in other parts of the Spanish economy.

Finally the Bank of Spain highlights the fact that revenues from tax seem to be increasing (even though there has been a cut in taxes in 2007), which could well lead to a budget surplus above the 1% predicted by the Spanish Government earlier this year.