Recession Deepens in Spain

An article in The New York Times highlights how Spain’s economy shrank in the final months of 2012 at the fastest pace since its recession began, data showed on Wednesday, pummelled by falling domestic demand and with no return to growth on the horizon.

The Bank of Spain said gross domestic product (GDP) contracted 0.6 percent in the fourth quarter from the third, compared to a drop of 0.3 percent in the July to September period.

The forecast in the central bank’s monthly economic report precedes preliminary growth data from the National Statistics Institute on January 30.

“These numbers are slightly better than we thought, but it is a confirmation the economy is in a very bad state,” said Silvio Peruzzo, economist at Nomura.

For more information visit: http://www.nytimes.com/reuters/2013/01/23/business/23reuters-spain-growth.html?ref=global