The worst of the economic crisis is over for Spain, Finance and Economy Minister Elena Salgado said yesterday, indicating that the third quarter would show the recession moderating.

“The worst, in the sense of the sharpest point of the crisis, is over. The worsening contraction is now behind us,” Ms Salgado told reporters on the sidelines of IMF and World Bank meetings in Istanbul, Turkey’s financial capital.

“In the second quarter we had a reduction of GDP (gross domestic product) more moderate than in the first quarter. The third quarter will be even more moderate,” she said.

The IMF has forecast that Spain’s GDP will shrink by 3.8 per cent in 2009 and by 0.7 per cent in 2010, making it one of the few developed economies where recession is expected to continue next year.

The Spanish government is expecting an unemployment rate of between 17.9 per cent and 18.9 per cent in 2010. The IMF has said the rate will rise above 20 per cent next year.