Spain’s economy contracted by 0.3 per cent during the fourth quarter, according to official figures released Wednesday, edging the country closer to a new recession as it deals with huge levels of unemployment and painful austerity cuts. The figure announced by the National Statistics Institute broke a run of seven quarters without economic contraction. The institute said GDP fell 0.3 per cent during the quarter compared with a year earlier. For all of 2011, it increased 0.7 per cent.
The economy is expected to slide further through March, placing Spain back in its second recession in less than three years. A technical recession is defined as two consecutive quarters of contraction.
Source: The Canadian Press