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Spain's economy minister talks up country's recovery

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Spain's economy minister talks up country's recovery
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The Spanish government is planning to revise its growth forecasts for the country for this year and 2015.

That word came from Economy Minister Luis de Guindos who said the economy is likely to expand by 1.5 percent this year, up from a previous estimate of 1.2 percent. For next year he is talking about 2.0 percent, up from 1.8 percent.

“We have a economy that has been brought back to health, productive and competitive, that stopped being a drag on the eurozone and is contributing, and making a difference, to its growth,” de Guindos said during an appearance in the lower house of Parliament.

It is the latest display of confidence in the strength of the Spanish economy’s recovery after a prolonged slump and despite continued sky-high unemployment.

However the jobless total did fall to 24.5 percent of the workforce in the second quarter from a high of near 27 percent last year, the sharpest year-on-year drop in eight years.

De Guindos said the government probably would also cut its unemployment forecast, which currently sees the jobless rate at 24.9 percent this year and 23.3 percent in 2015.

Madrid is due publish its official economic projections for the next few years in September as part of the 2015 budget proposal.

with Reuters