Spain Will Remain in Recession Next Year, OECD Forecasts

Spain’s economy, the euro area’s fourth largest, won’t recover next year as government and private-sector funding conditions remain tight, the Organization for Economic Cooperation and Development said.

Gross domestic product will contract 0.8 percent in 2013 after shrinking 1.6 percent this year, the Paris-based OECD said in a report today. That compares with the International Monetary Fund’s forecast for 0.1 percent growth after contracting 1.8 percent this year.