Spain GDP Shrinks For Sixth Straight Quarter

Spain has sunk even deeper into recession, according to latest figures.

The struggling eurozone country saw its gross domestic product (GDP) shrink by 0.7% in the fourth quarter.

The contraction was worse than expected and means Spain has now suffered six straight quarters of negative growth.

Spain's economy contracted by a total of 1.37% in 2012 and year-on-year GDP has contracted for five quarters.

Statistics showed Spain's economy shrank at the fastest pace in a year, as budget cutbacks and increasing unemployment prompted households to slash spending even more.

On Tuesday it was revealed that Spanish retail sales over the Christmas period were down more than 10% on the year before.

The National Statistics Institute (NSI) said the latest GDP estimate would be finalised on February 28 when the official figure is released.

Last week the NSI said the jobless rate for the last three months of 2012, for those aged 16 to 24, had soared to 55.13%.

The unemployment figure for young people was up from 52.34% in the previous quarter.

Overall, Spain's unemployment rate has risen to its highest level since measurements began in the 1970s, as a prolonged recession and deep spending cuts have left almost six million people out of work at the end of last year.

The nationwide jobless total rose 1% to 26.02% in the fourth quarter of 2012, or 5.97 million people, according to the NSI.