Bank of Spain Says Economy Shrank in Final Months of 2011
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The Bank of Spain said available data suggest the euro area’s fourth-biggest economy contracted in the final months of the year, a day before Prime Minister Mariano Rajoy is set to unveil his first budget measures.
The central bank said in its December monthly bulletin published today that tourism and exports showed signs of weakening from October while household spending and investment worsened, adding the data aren’t yet complete. Spain’s fragile recovery in the first half was sustained by exterior demand as the most drastic austerity measures in three decades pushed unemployment to a 15-year high.