Bank of Spain raised its growth forecast – The Economist

The Bank of Spain raised its growth forecast for 2015 to 2.8%, highlighting the positive impact of the measures of the ECB, the depreciation of the euro and the reduction in oil prices.

The Bank of Spain on Thursday raised its growth forecast for 2015 to 2.8%, highlighting the positive impact of the measures of the ECB, the depreciation of the euro and the reduction oil prices.

Emphasizing, “a slight acceleration in activity” over the end of 2014, supported by a revival of household consumption, the Bank of Spain forecasts growth of 0.8% in the first quarter, allowing you to review “upward the estimated 2015 GDP growth to 2.8%”, compared to 2.4% forecast by the government.

“2016 is expected to continue the expansionary phase, with an average annual rate of 2.7%, “added the supervisor.

The growth will be somewhat lower than in 2015 because” some attenuation of some of the impulses present projects at present ” According to the same source.

The Bank of Spain considers that the country has reduced its deficit to 5.5% of GDP at the end of 2014, in line with government forecasts.

The Spanish supervisor expects the deficit, which reached 9% of GDP in 2011, was reduced to 4.5% in 2015 and then to 3.9% in 2016. This latest forecast contradicts the government, which promised to Brussels bring its deficit below 3% from 2016.

Driven by household consumption, which specifically uses the best financing terms offered by banks by asset purchase program of the ECB, growth will have an effect positive on employment.

However, the country still suffers from a high rate of unemployment and the Bank of Spain, as the government provides a rate of 22.2% at the end of 2015 and 20.5% in 2016, compared to 23.7% at the end of 2014.

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