Madrid- Spain's economy has officially slipped into recession after the gross domestic product (GDP) shrank by 1.0 per cent in the final quarter of 2008, Madrid reported Wednesday.

The central statistics office INE said the decline followed on a 0.3 per cent shrinkage in the third quarter, thereby making it the second quarterly drop in a row, the classic standard for a recession.

Despite the final two quarters' declines, Spain's economy still managed a slim 1.2 per cent GDP growth for 2008, INE said. (dpa)