Major economic indicators predict that Spain's GDP will fall during the second quarter, a drop that could be worse than the 0.3% drop between January and February 2012.
A May report from the Bank of Spain describes the poor performance of sectors tied to weak consumer spending.
A falling GDP and slow spending are direct consequences of doubts caused by a rising risk premium, continual stock market losses and negotiations about the Spanish banking sector bailout, which has put limits on loans offered to companies and individuals. Austerity is suffocating the Spanish economy.
