Spain’s GDP fell for the fifth consecutive trimester at -1.6% on an annual basis, said the national statistics institute which in the third trimester of 2012 registered a 0.3% fall on the previous trimester. A decrease in consumption and investments following the new value added tax (VAT) increase contributed to the situation. According to statistics, the Spanish economy contracted 0.7% in the first trimester and 1.4% in the second, one tenth worse than originally forecast.