Madrid - Spain's government budget showed a deficit of 3.8 per cent of gross domestic product (GDP) in 2008, the finance ministry said Tuesday, as one of Europe's most troubled major economies showed further signs of weakening.

The deficit compares with a with a surplus of 2.2 per cent in 2007, the ministry said.

The government attributed the change to fiscal stimulus packages designed to buttress the economy, which has gone into a recession after being hit by the meltdown of the key construction sector.

The trade deficit meanwhile dropped 4.9 per cent in 2008 in its first fall since 2002, the industry ministry said, attributing the drop to declining consumption. (dpa)