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Spain still stuck in recession

Spanish economy - Fails to follow France and Germany
Spanish economy - Fails to follow France and Germany

Official figures show that Spain's economy shrank further in the second quarter, down by 1% from the first three months of the year.

Compared with the same period last year, gross domestic product contracted by 4.1%, the National Statistics Institute said in preliminary figures.

It was the fourth quarterly contraction in a row. The Spanish economy shrank by 1.9% in the first three months of this year.

Spain remains mired in its first recession for 15 years, which began at the end of 2008 as the global credit crunch worsened a correction which was already underway in its once booming housing sector.

In contrast, Germany, France and Portugal yesterday announced surprise rebounds out of recession, helping drag the euro zone back towards positive territory in a further sign that a global economic recovery is taking hold.