Zapatero gives Spanish growth update

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Zapatero gives Spanish growth update

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Spain’s Prime Minister José Luis Rodríguez Zapatero is predicting the country’s economy will grow by about 2.0 to 2.5 percent over the next four years.

During a speech to business leaders he said: “The government is convinced that the efforts resulting from the wide array of reforms we are putting in place will contribute to bring our country’s growth to close to its potential average level of around 2.0 to 2.5 percent between 2011 and 2015.”

Spain, the largest of the euro zone’s fiscally weak countries, is facing increasing difficulty borrowing money, but a Treasury official in Madrid said that “if market conditions allow” it should issue a new 10-year syndicated government bond this month

A newspaper report said Spain will raise six billion euros through the bond sale.

Investors, nervous about some euro zone countries defaulting, are charging close to a record amount for Spain to borrow.

The Spanish Treasury is expected to pay high yields on a five-year bond issue on Thursday in what will be its first auction of the year.