The Spanish economic contraction is slowing and will pick-up in the final quarter of 2009, according to a senior government official.

Economy minister Elena Salgado has expressed confidence that Europe's fifth largest economy will record more positive economic figures in this year's October to December period.

The Spanish politician was responding to the release of data by the National Statistics Institute, which disclosed that gross domestic product declined between July and September by 0.3 per cent compared to the second quarter of 2009.

Speaking to reporters before she entered parliament, Ms Salgado said: "We expect that the results of the next quarter [will match] our predictions and they will be better."

Earlier this month, Spain's labor ministry revealed that the number of unemployed workers drawing jobless benefit passed 3.8 million in October, which is an increase of 2.7 per cent on October's results.

The country's unemployment rate reached 19.3 per cent between June and September earlier this year.