Spanish economy contracts amid deepening recession
28 Aug 2012
Spain's economy shrank further in the second quarter of the year as the country continued to be in recession, according to official figures.
The economy contracted by 0.4 per cent between April and June following a 0.3 per cent drop in the previous three months, according to the Instituto Nacional de Estadistica.
The struggling economy of the country has now contracted for three quarters in a row and speculation has persisted that Spain would have to request a full financial rescue.
On an annual basis, Spain's economy contracted by 1.3 per cent in the second quarter, but official figures showed that Spain grew during 2011 as a whole even as statements issued earlier claimed it had shrunk for the year.
The economy though contracted in 2010 more than had been stated.
The European Central Bank had said it would come up with ways to help eurozone countries, raising hopes that it would buy Spanish debt to push down the cost of borrowing.
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