The Spanish economy shrank for the sixth consecutive quarter from July to September, preliminary data showed today, as the economy limps behind its stronger euro-zone neighbours.
Euro zone quarterly GDP is expected to show positive growth in the third quarter tomorrow, after five quarters of contraction, as its two largest economies, Germany and France, consolidate their own escape from recession.
Slightly better-than-expected figures from Spain fuelled hopes that the euro zone as a whole would also surprise on the upside, but the contracting economy, which accounts for around 9 per cent of the 16-member GDP, continues to weigh on the average.
Spanish GDP shrunk 0.3 per cent in the third quarter from a quarter earlier, and 4 per cent from a year earlier and, while this was better than previous quarters, the government says it is unlikely to expand on a quarterly basis until mid-2010.
Spain was the first euro zone member to report third quarter figures, but is one of the few expected to remain in recession.
Reuters