Though most are keeping their opinions low and noncommittal, Spain’s Central Bank has been reported to say that the shattered economy is beginning to show signs of a steady recovery.

A bulletin from Spain’s main bank, released last month, was quoted to say, "The most recent indicators show an overall slowdown in the pace of decline of activity in the summer months."

It continued, "Economic activity continued to contract in the second quarter of 2009, albeit at a less intense pace than the first."

As we have recently reported, Spain has been especially sluggish in comparison to other EU countries, such as France and Germany who both showed signs of recovery in the second quarter of this year.

The Spanish economy was hit exceptionally hard by the credit crunch as the country’s growth heavily relied on the increasing demand for credit and of course the property market, which required easy access mortgage loans.

Another victim to the events was naturally the construction sector creating a sharp rise in unemployment, though it was reported that unemployment grew less dramatically in August. This said, Spain currently has the highest unemployment rate in the EU and has been forecasted to rise by 10% going in to 2010.

More good news though, comes in the form of car sales beginning to improve slightly due to the Government’s interception earlier this year, offering subsidies for new purchases.

The Spanish government expects the overall economy, said to be Europe’s fifth biggest, will return to growth by the end of the second quarter 2010.