BBVA Research warned Monday about the economic uncertainty which would continue in the second half of this year, despite slight increases in GDP during the first two quarters. The warning comes as a result of the negative effects that the VAT increase may have as well as the budget austerity measures and the uncertainty of the markets. The uncertainty could imply a return to negative growth in the third quarter.

The BBVA report “Spain’s Situation” predicts that Spain’s GDP would contract by 0.6 per cent this year and grow 0.7 per cent in 2011, figures which are more pessimistic than those of the government, which predict a negative growth of 0.3 per cent this year and a growth of 1.3 per cent in 2011.