Spain weaker than previously thought

It seems Spain’s economy was in a worse state than we knew.

GDP contracted by more than previously estimated in 2010 – by 0.3 percent – more than the 0.1 percent contraction originally reported.

It also grew by just 0.4 percent last year, which was less than the 0.7 percent figures first published.

The just released revised figures from the National Statistics Institute in Madrid play into fears about Spain’s ability to rein in its public deficit.

The official data provider said the changes were a result of new structural data available and revisions to preliminary data

The downwards revision to the 2011 growth figures was a result of a change to external demand figures, which showed exports were slightly weaker than first thought.

The revised data came one day before the release of final data for gross domestic product data for the second quarter, which are expected to confirm output fell by 0.4 percent on a quarterly basis.

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