MADRID, May 29 (Xinhua) - Spain' gross domestic product (GDP) continued its contraction in the first quarter of 2013, the Bank of Spain reported on Wednesday.

According to the Bank's report for May, GDP contracted by 0.5 percent year on year in the first three months of the year, although there have been some improvements in domestic demand, consumer confidence and employment, with the Bank arguing that the destruction of jobs has slowed down.

The Bank of Spain said that, according to the European Commission, household confidence increased in April due to improved expectations over employment.

The Spanish Sociological Research Centre had said Spain's consumer confidence had slightly increased in April due to improved perceptions over the current situation and expectations for the future. However despite the slight improvement consumer confidence is still very low and Spaniards are a long way from feeling optimistic.

The Bank of Spain emphasized that unemployment had grown less quickly and experienced a fall in the fourth month of the year, due mainly to the arrival of the holiday season, while pointing out that the number of people affiliated to the Social Security system experienced a slight fall in annual terms.

Meanwhile, the Bank of Spain also published information about Spain's deposits which fell by 7.098 billion euros (9.193 billion U.S. dollars) in April to a total of 913.624 billion.

Finally the Organization for Economic Co-operation and Development (OECD) worsened its predictions for Spain.

The organization worsened its economic predictions for Spain, where it now believes that GDP will contract by 1.7 percent in 2013 rather than the previous 1.4 percent the OECD had forecast last November. Endi

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