Spain will see its economy shrink by 1.3 percent this year, with a return to growth in 2014.
At a news conference to unveil new measures to revive the economy, ministers announced “eight key reforms” but “no major change on economic policy”.
Easing off austerity, they also delayed the Brussels-mandated three percent deficit goal from 2014 to 2016, a move that will see public debt grow to 100 percent of GDP.
There was no joy for jobseekers as the ministers’ figures indicated unemployment at 27 percent this year and hovering around 25 percent until 2016.
That followed the announcement on Thursday that jobless figures had hit record levels with 6.2 million unemployed.