Bank of Spain has announced that the Spanish economy has grown for a second successive quarter.
Growth has accelerated with a 0.2 per cent rise in GDP from the first quarter of 2009 when it rose by 0.1 per cent.
The provisional figures will be confirmed by the Spanish government later in the week.
Spain had been in its worst recession for 60 years, with GDP falling for six consecutive quarters and the economy remains 0.2 per cent smaller than it was at the same period a year ago.
Although government austerity measures totaling €15bn (£12.4bn) in spending cuts and labour market reforms are shrinking the deficit and have led the risk premium on Spanish debt to fall by a third since 16 June, they pose a threat to future growth.
The EU has suggested that the Spanish economy may register negative growth in the third quarter of 2010.