class="MsoNormal">
class="MsoNormal">
class="MsoNormal">The Spanish
recession is deepening according to new figures.
class="MsoNormal">
class="MsoNormal">
class="MsoNormal">They also show that the initial downturn was steeper and began earlier than first thought.
class="MsoNormal">
class="MsoNormal">Spain only emerged at the start of 2010 from nearly 2 years of recession sparked by the
global financial crisis and a property bubble implosion that destroyed millions of jobs and left huge debts in its wake.
class="MsoNormal">
class="MsoNormal">But the recession returned with a vengeance.
class="MsoNormal">
class="MsoNormal">Economic output slumped by 0.4% in the 2nd quarter after a 0.3% drop in the 1st quarter the National Statistics Office said.
class="MsoNormal">
class="MsoNormal">On an annual basis Gross Domestic Product (GDP) fell by 1.3% which is much faster than the 0.6% decline registered in the first 3 months of 2012.
class="MsoNormal">
class="MsoNormal">The latest figures revealed that the Spanish recession dates back to 2011 and not the start of 2012.
class="MsoNormal">
class="MsoNormal">Spain snatched a €100 billion Eurozone rescue loan in June to salvage the balance sheets of its banks.
class="MsoNormal">
class="MsoNormal">The government is meanwhile pursuing a severe austerity programme by slashing spending to rein in a gaping deficit and to regain the confidence of investors who are demanding a high premium for loans.
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