The central bank said early indicators show that Spanish tourism, exports, spending and investment have been hit, which is likely to have led to a contraction in GDP in the fourth quarter.
In its December bulletin the bank said: "After the stagnation the Spanish economy showed in the third quarter, the available economic information, still incomplete, indicates activity contracted in the final months of the year."
Mr Rajoy, who was elected in a landslide election victory in November, has said he will today unveil economic measures that will last until a full budget can be presented to parliament in the first quarter of the year.
Spain, which has the eurozone's third-biggest budget deficit, is already struggling under tough austerity measures and the highest unemployment rate for 15 years.
Spain's new financial minister Luis de Guindos has already warned the economy would "surely see a downturn" in the final quarter of this year. He said the first quarter of 2012 would also be tough, leading to fears of another recession – defined as two successive quarterly contractions – in Spain.
The Bank of Spain said its indicators showed a "marked weakening" of household consumption and investment in the last quarter. The construction industry, which has been at the forefront of the downturn after Spain's property bubble burst, is still on a "path of contraction", the Bank added.
Exports had slowed to almost half the pace registered in the third quarter, and tourist numbers also fell.
Slow economic growth will raise concerns that Spain will not be able to meet its target to cut the budget deficit to from 9.2pc of GDP last year to 3pc by 2013.
Mr Rajoy has promised to cut Spain's deficit by €16.5bn in 2012 through a series of tough spending cuts as well as banking and labour reforms.
Some of the details of his plans will be laid out today following Mr Rajoy's second cabinet meeting.
The Telegraph
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