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Spanish GDP shrinks but bond auction sees strong demand
The Spanish economy shrank for the first time in two years in the fourth quarter, the start of what economists fear could be a prolonged slump as Madrid implements harsh austerity measures to deflate a massive budget deficit.
Gross domestic product shrank by 0.3 per cent in the fourth quarter on a quarterly basis, as forecast in a flash estimate, and after stagnating in the third quarter, final official data showed.
0n an annual basis the economy grew by 0.3 percent in the fourth quarter, in line with Reuters forecasts consensus and compared to 0.8 percent in the third quarter.
And Spain saw solid demand for a debt auction, easily shifting what it wanted to sell at a bond auction.