Spain's downturn deepened in the second quarter, with the economy shrinking 0.4 percent after contracting 0.3 percent in the first three months of 2012, official data showed Monday.
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| Government employees demonstrate against the Spanish government's austerity measures, in the center of Madrid, on July 23, 2012. |
INE said the second quarter outcome reflected "weaker domestic demand which was offset in part by a positive contribution from external demand."
Earlier this month, the government said the economy would continue in recession next year, shrinking 0.5 percent instead of growing 0.2 percent as previously expected.
The economy was tipped to shrink 1.5 percent this year, with unemployment hitting an unprecedented 24.6 percent, it said.
Spain, in a tailspin since a massive property bubble burst in 2008, was forecast to return to growth of 1.2 percent in 2014 and 1.9 percent in 2015.
The International Monetary Fund expects the Spanish economy to shrink 1.7 percent this year and 1.2 percent in 2013.
