Government employees protest against cuts in Barcelona, Spain, Monday, July 30, 2012. Spain's borrowing rates hit a record high on Monday, increasing the risk it might need a sovereign bailout, as investors worried the government would be overwhelmed by the debts of its banks and regions. Spain has called for the European Central Bank to take emergency action to ease its government borrowing rates. In the past, the ECB has bought bonds on the open market, lowering their yields, or interest rates. The Spanish government has pushed through another round of austerity and structural reforms to convince investors of its creditworthiness. However, opposition to the government's strategy is increasing, especially as the country is mired in its second recession in three years and weighed down by an unemployment rate of nearly 25 percent. (AP Photo/Manu Fernandez)
MADRID - Spain's National Statistics Institute says the Spanish economy remains mired in recession after contracting 0.4 per cent in the second quarter of the year from the previous three month period.
It was the third consecutive contraction following the previous two 0.3 per cent quarterly declines.
A technical recession is commonly defined as two consecutive quarters of economic contraction.
The institute said Monday the second quarter decline was due to negative domestic demand, compensated somewhat by an increase in exports.
Spain with near 25 per cent unemployment is struggling to avoid having to seek a financial bailout, as Greece, Ireland and Portugal have already done.
