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Spain recession deeper than thought

Spanish take to the streets to protest at austerity measures
Spanish take to the streets to protest at austerity measures

Spain's National Statistics Office has said that the country's recession is worse than previously thought.

The economy shrank by 0.8% in the fourth quarter of 2012 compared with the previous three-month period.

Today's figure was higher than last month's preliminary estimate of a 0.7% contraction and is more than double the third quarter's 0.3% drop.

Spain's economy has been shrinking for the last 18 months with unemployment standing at 26%.

The statistics department also said that economic activity was down 1.9% in the fourth quarter from the year-earlier period. For the whole of 2012, it shrank 1.4%.

The government said it predicts the economy will start to stabilise in the second half of this year and emerge from recession in 2014.