MADRID, Spain (AP) _ The Spanish economy expanded at a yearly rate of 3.6 percent in the second quarter, the same as in the first three months of the year.

The National Statistics Institute said Tuesday that domestic demand soared 5.3 percent in the April-June period from a year ago while foreign demand for Spanish goods remained sluggish, cutting 1.7 percentage points from overall GDP growth levels.

Prime Minister Jose Maria Aznar's government has said the economy may end the year with a GDP growth rate as high as 3.7 percent. That compares to 2.0 percent forecast by the European Union for the 11 countries that have adopted the euro. Spain is among those 11 countries.