Spain's economy shrank by 0.3% in the last quarter of 2011 from the previous three months.
The statistics office confirms that there was zero growth in the third quarter. On an annual basis, the economy grew by 0.3%.
The BBC reports it is widely expected that Spain will fall into recession this year, with some analysts warning that the downturn could be prolonged.
The Bank of Spain has said it expects the economy to shrink 1.5% in 2012. The unemployment rate is 22%.