Spanish economy experiences third contraction

on 30/07/2012 09:22:48

The Spanish economy remains mired in recession after contracting 0.4% in the second quarter of the year compared with the previous three-month period, the National Statistics Institute said today.

It was the third consecutive contraction following the previous two 0.3 % quarterly declines.

A technical recession is commonly defined as two consecutive quarters of economic contraction.

The institute said today that the second quarter decline was due to negative domestic demand, compensated somewhat by an increase in exports.

Spain, which has an unemployment rate of almost 25%, is struggling to avoid having to seek a financial bailout, as Greece, Ireland and Portugal have already done.