Spain's economy may be turning the corner.

The contraction in Spain's GDP slowed to 0.1% on quarter in Q1 from +0.5% in Q2, Spain's central bank said, adding that with confidence indicators improving, it expects a complete turnaround by Q3. If correct, the Q2 figure would be the best - or least worst - since the recession hit at the end of 2011. Many economists aren't as optimistic, but investors seem to be buying into the bank's story, and Spanish shares (EWP) were +1.4% at midday in Europe.