EU forecasts gloomy outlook for Spain
2012-11-06 10:58:31
The European Commission forecasts Spain's economy to shrink 1.6 percent this year, slightly more than a 1.5 percent fall estimated by the Spanish government, El Pais reported Tuesday.
The commission is set to publish its autumn forecast on Wednesday. Citing a draft of the report, the newspaper said gross domestic product will fall 1.5 percent next year compared to the 0.5 percent contraction projected by the government.
The economy will gradually recover in 2014, GDP is expected to rise 0.5 percent.
The newspaper said Spain will log a budget deficit of 8 percent of GDP in 2012 before falling to 6 percent in 2013. Then it will improve slightly to 5.8 percent in 2014.