Spain’s economy stagnated in the third quarter.
The statistics office said economic growth was zero from the previous three months which was at least better than economists’ forecasts of a slight contraction.
On an annual basis the economy grew by 0.2 percent.
Reacting to the figures the Labour Minister Valeriano Gomez said that Spain was not able to create jobs at its current growth rate.
The data fuel fears of a prolonged period in the doldrums with robust exports overshadowed by persistently weak domestic demand.
Some government stimulus measures had ended at the end of June as an austerity programme designed to cut the country’s fiscal deficit kicked in.
Many economists believe the Spanish economy could contract again late this year or in early 2011 as high unemployment chokes off any meaningful recovery.
Spain’s gross domestic product inched up by 0.2 percent in the second quarter having emerged from an 18-month recession in the first three months of the year.