Is the worst over for Spain after nearly two years of recession?

Maybe, after the Spanish Instituto nacional de estadistica released the flash estimate of Q2 GDP.

• Q2 GDP seen at -0.1% from -0.5% in Q1
• -1.7% vs -2.0% y/y

The news comes on top of a fall in Spanish unemployment in Q2 to 26.3m from 27.2m in Q1, also the first fall in two years.

Despite Economic minister Luis de Guindos claiming that the recession is over, economists still see an upward battle for the country saying that the high unemployment rate was still a big drag.

The INE said that Q2 improvement was down to temporary factors and that shrinking domestic spending was offset by partially by exports.

Spain is still struggling with their fiscal problems and until they get that under control then it could stem a potential recovery.