SPAIN’S economy is believed to have expanded by 0.7 percent in the first quarter of 2016 from the previous three months, when it grew by 0.8 percent, the Bank of Spain said Friday.

    The central bank also projected the economy would expand by 2.7 percent in 2016 as a whole, revising its forecast downwards from an earlier projection for growth of 2.8 percent.

    It said growth would slow to 2.3 percent in 2017.

    The Bank of Spain said the downward revision was the result of increased international and local risks, with a prolonged political impasse following an inconclusive December general election potentially weighing negatively on consumer and investment decisions.

    (SD-Agencies)