Spain’s Economy Minister Luis de Guindos announces that the country’s recession deepened in the second quarter of 2012 after its gross domestic product contracted at an even faster pace than during the first quarter.

“Available second quarter data show a slightly bigger contraction,” he said during an event at the Spanish conservative think tank association, Foundation for Analysis and Social Studies (FAES) on Sunday, Reuters reported. 

Spain’s economy shrank by 0.3 percent in the first quarter of the year as the country fell back into recession for the first time in three years. 

The government expects the economy to contract by 1.7 percent year on year in 2012, but many analysts have warned that tough austerity measures could worsen the slump. 

However, Guindos said his country plans to stay on its path of reforms to fight the crippling debt crisis. “The Spanish government is committed to austerity, with a difficult budget correction, and economic reforms which are essential for growth…it’s a process, which must continue.” 

Last month, the government was forced to ask for a rescue loan of up to EUR 100 billion (USD 125.39 billion) from its euro zone partners to inject funds into its troubled banking sector, according to Press TV.

The country also has the highest unemployment rate in the euro zone with nearly 25 percent of its workforce jobless.