Earlier on August 05, the Bank of Spain notified that tensions on sovereign debt markets could extend to the real economy as credit dries up on financial markets. Consequently, the International Monetary Fund has hailed for more reforms and said that many imbalances and structural weaknesses needs to be addressed.

Afterwards, Spanish Socialist Prime Minister Jose Luis Rodriguez Zapatero addressed a cabinet meeting as an attempt to outline measures to ensure that the country meets its deficit goals this year and boosts growth.

In addition, the National Statistics Institute has suggested that the country has reflected a slow economic growth, during the second quarter, whereas the gross domestic product observed to gain a hike of 0.2%, a significant difference as compare to 0.3% for the initial three months of the year.

Experts have claimed that "very positive support from external demand" has played a role to fluctuate the figures and the economy.

“The recovery is very slow”, added Estefania Ponte, the Madrid-based Head of Research at Cortal Consors. “What would really help growth would be job creation to boost household spending. This is unlikely after the rise in Spain’s borrowing costs in August has made it even more difficult for companies to finance themselves”, she added.