Forexpros – Spain’s economy contracted in line with a preliminary report in the first three months of 2012, shrinking for the second consecutive quarter and slipping back in to a recession, official data showed on Thursday.
In a report, Spain’s statistical office said the country’s gross domestic product contracted by a seasonally adjusted 0.3% in the first quarter of 2012, unchanged from a preliminary estimate.
Spain’s economy contracted 0.3% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Annualized GDP fell at a rate of 0.4%, matching forecasts and unchanged from an initial estimate.
Following the release of the data, the euro was flat against the U.S. dollar, with EUR/USD trading at 1.2718.
Meanwhile, European stock markets were broadly lower after the open. Spain’s IBEX 35 fell 0.4%, the EURO STOXX 50 shed 0.4%, France’s CAC 40 dipped 0.2%, Germany’s DAX eased down 0.15%, while London’s FTSE 100 slumped 0.4%.
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