Spain’s economy contracted in the first quarter, putting the euro region’s fourth-largest economy into its second recession since 2009.
Gross domestic product fell 0.3 percent, the same as in the previous three months, the Madrid-based National Statistics Institute said today. That compares with the Bank of Spain’s estimate on April 23 for a 0.4 percent decline. From a year ago, GDP dropped 0.4 percent, INE said.
Spain is relying on exports to drive the recovery as households pay down debt. While 1.73 million households have all their members out of work, families that do have income have been hit by tax increases and may see their wages fall after changes to labor rules made it easier to renegotiate contracts.