Economy shrinks 1% in second quarter

August 20, 2009 at 10:22 (News) (, , , )

The Spanish economy shrank by 1 percent in the second quarter relative to the first, marking the fourth-consecutive quarter in which the nation’s gross domestic product has contracted.

Spain’s second quarter GDP also reportedly fell by 4.1 percent compared with April-June of 2008.

These latest figures, released Friday by the INE statistics institute, were similar to second-quarter estimates issued July 30 by the central bank, which predicted a drop of 0.9 percent and 4 percent, respectively.

The global economic crisis caused a near-collapse of Spain’s once-buoyant construction and real-estate sectors, which in turn had a debilitating effect on the rest of the economy.

Spain’s GDP declined by 0.3 percent in the third quarter of 2008, by 1 percent in the final quarter of last year and by 1.9 percent in the first quarter of 2009.

The Iberian nation is mired in its first recession since 1993.

Source: Sur in English

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