Final data confirms Spain entered recession in Q1
2012-05-17 11:04:21
The Spanish economy returned to recession in the first quarter of 2012, final results from the statistical office Ine confirmed Thursday.
The gross domestic product fell 0.3 percent quarter-on-quarter in the first quarter as estimated in the preliminary report. This followed a similar rate of contraction in the fourth quarter of 2011, which was the first decline in activity since the final three months of 2009.
A technical recession is commonly defined as two consecutive quarters of economic contraction. The latest slump in economic activity was led by a fall in domestic demand and weaker contribution from external trade, according to the statistical office.
Annually, the GDP fell 0.4 percent following a 0.3 percent expansion in the previous quarter. This also matched the preliminary findings. Year-on-year, consumer spending fell 0.6 percent, while investment dropped 8.2 percent. The contribution of net exports to the overall GDP fell to 2.8 percentage points from 3.2 percentage point in the previous period.