UPDATE 1-Venezuela economy shrinks in 3rd-qtr: official

* Debate whether second consecutive drop means recession

* Contraction likely between 1-2 percent, official says (Recasts with recession debate, adds quote)

CARACAS, Nov 11 (Reuters) - Venezuela's economy shrank in the third quarter for the second consecutive period, but the government is still debating whether South America's top oil exporter is now in recession, a senior official said on Wednesday.

The official, who asked not to be named, said the contraction was smaller than in the second quarter, when the economy shrank by 2.4 percent, the first drop in over five years.

"There will be a contraction, but less than in the last quarter. We are still evaluating the numbers but it should be between minus 1 percent to (minus) 2 percent," he told Reuters.

There is still disagreement within the government over whether the economy technically enters recession after two or three consecutive quarters, he said.

The central bank will "probably" publish the third-quarter economic data next week, he added.