Spain government improves economic forecasts

27th September 2013, Comments 0 comments

Spain's government improved its economic outlook on Friday, forecasting the jobless rate would dip under 26 percent and economic growth would reach 0.7 percent in 2014.

It forecast the unemployment rate would be 26.6 percent in 2013 and 25.9 percent in 2014, Deputy Prime Minister Soraya Saenz de Santamaria told a news conference, presenting next year's budget.

She confirmed Prime Minister Mariano Rajoy's forecast that the economy would grow by 0.7 percent next year as the economy recovers from a five-year crisis that has inflicted two recessions on the eurozone's fourth-biggest economy.

The unemployment forecasts, though still painfully high, were lower than the previous expectations of rates of 27.1 percent for 2013 and 26.7 in 2014.

The government raised its outlook for growth next year from an earlier forecast of 0.5 percent.

It has said Spain will exit recession in the current quarter after a two-year recession, the second in the crisis sparked by the collapse of a real estate boom in 2008.

© 2013 AFP

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