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Spain says 2012 recession deeper than first announced

Last Updated: Tuesday, August 27, 2013 - 21:03

Madrid: Spain's job-wrecking recession was deeper than first announced in 2012, revised figures showed Tuesday.

The Spanish economy shrank 1.6 percent in 2012 last year rather than the 1.4-percent contraction first posted, the National Statistics Institute said.

Spain's economy, the eurozone's fourth largest, also hit the brakes harder than first thought in 2011 when it grew by a meagre 0.1 percent, not the 0.4-percent growth earlier reported, the updated figures showed.

The revised figures change little for the Spanish economic outlook but they serve as a reminder of the depth of a two-year downturn that sent unemployment soaring to towering new highs.
Spain is still struggling to overcome the aftermath of a decade-long property bubble that imploded in 2008, destroying millions of jobs and sending debt levels soaring.

Official data show the unemployment rate hit 26.26 percent in the second quarter of this year, slightly below the record 27.16 percent posted in the first quarter.

Spain's government and the central bank say the economy could emerge from recession with modest growth in the third quarter of this year.

Definitive figures for second quarter economic growth are scheduled for release on Thursday.


First Published: Tuesday, August 27, 2013 - 21:03
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