Speaking on his arrival at a meeting of EU Economy and Finance ministers in Brussels this morning, Pedro Solbes said that GDP growth of 2.7% achieved over the first three months of this year emphasises that the Spanish economy is experiencing "rapid deceleration."

The rate is 0.8% lower than for the final quarter of 2007 (3.5%), 1.4% lower than for January-March last year (4.1%), and the lowest since the fourth quarter of 2002 (also 2.7%).

The slowdown is mainly attributed to a combination of falling internal demand and the construction sector crisis.