FROM 3.5 PERCENT GROWTH to 1.5 percent contraction in a few quarters: Spain has entered recession:

Spain's economy contracted during the fourth quarter, putting it into recession for the first time in 15 years, according to a government report cited by a Spanish newspaper on Tuesday. The Spanish Economy Ministry's synthetic activity indicator or ISA (ISA), which closely tracks gross domestic product (GDP), contracted 1.5 percent between October and December, Spain's El Mundo said. That would mark Spain' second consecutive quarter of shrinking growth, after quarter-on-quarter GDP contracted 0.2 percent between July and September, putting Spain into recession for the first time since 1993.

UPDATE. More here:

The central government had a deficit for the first 11 months of the year of EUR14.06 billion, equal to 1.28% of gross domestic product, the Spanish Finance Ministry said Tuesday.

The government's revenue fell by 12% in the same period, the finance ministry said.

Spain is experiencing one of the European Union's most pronounced economic downturns after the global financial crisis hastened the collapse of a decade-long construction boom.

After several years of near 4% GDP growth, Spain's GDP fell 0.2% in the third quarter from the second quarter - its first quarterly contraction since 1993.