The INE National Statistics Office had previously estimated an 11 percent fall last year.
The Spanish economy has been one of the worst-hit in the eurozone, with its key tourism industry battered by the coronavirus restrictions.
The gross domestic product (GDP) was flat in the fourth quarter compared to the previous three-month period, according to the INE, which had previously estimated 0.4 percent growth.
That followed a 17.1 percent quarterly jump in the third quarter which was slightly higher than a previous estimate.
Between March and June 2020, Spain imposed one of Europe’s toughest lockdowns, confining the population to their homes for all but essential activities and shutting down many industries, hitting the economy hard.
Economic activity rebounded during the summer but fresh restrictions imposed to curb a second wave of infections once again cooled the economy, especially tourism.
The Bank of Spain on Tuesday, March 23rd, lowered its forecast for economic growth in 2021 to 6.0 percent down from the 6.8 percent predicted in December.
It blamed the change on new virus restrictions on social life and a slower-than-expected rollout of the European Union’s recovery funds for the bloc’s coronavirus-battered economies.