Spanish Government Raises Economic Forecast

Madrid, July 29 (QNA) – The government of Spanish Prime Minister Mariano Rajoy raised the country’s economic outlook on Tuesday, with unemployment levels also expected to improve.

According to an announcement by Economy Minister Luis de Guindos, a member of the governing People’s Party (PP), the domestic economy will expand by 1.5 per cent this year, and 2 per cent in 2015.

In May, the Spanish government had raised its growth forecast from 0.7 to 1.2 per cent for 2014, and from 1.2 to 1.8 per cent for the coming year, dpa reported.

Economic indicators point to significant recovery for a country still reeling from the 2008 financial crisis and the accompanying plummet in housing prices, de Guindos said.

Without disclosing details, de Guindos said that Madrid expects to lower predicted unemployment levels in September, which are currently expected to stand at 24.9 per cent at the end of 2014 and 23.3 per cent in 2015.

Driven by high internal demand, de Guindos said that the fourth largest economy in the eurozone had entered a phase of “sustainable growth.” “The worst of the crisis is over,” he added.(QNA)

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