Spain lowers 2011 growth forecast due to austerity plan

20th May 2010, Comments 0 comments

The Spanish government has lowered its 2011 growth forecast from 1.8 percent to 1.3 percent due to the impact of its tough new austerity measures aimed at slashing the deficit, the finance minister said Thursday.

"The fiscal consolidation process will lead to a reduction in the growth forecast" from 1.8 to 1.3 percent in 2011, Elena Salgado told a news conference.

She made the announcement as the cabinet approved a two-year 15-billion-euro austerity plan aimed at slashing the deficit and easing concerns that Spain will follow Greece into a debt crisis.

© 2010 AFP

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