Spain in Worse Than Expected Economic Situation

All aid made available in June will be used

Spain's economy performed worse in 2011 and 2010 than previously reported, the National Statistics Institute said on Monday as the country struggles to shake off the recession and avoid a sovereign bailout.

Newly released data shows GDP grew a modest 0.4% in 2011 instead of 0.7 % as exports and consumer demand were weaker than earlier estimated. In 2010 the economy contracted by 0.3% instead of 0.1%. Estimates of an economic slowdown of 3.7% in 2009 and 0.9% in 2008 remain unchanged. The government expects the economy to shrink further over the rest of the year and the next.