Spain 3% growth expected for 2016 – The Economist

The fourth eurozone economy expected to grow 2.9% this year and 2016 and 3% for 2017 and 2018, announced Economy Minister Luis de Guindos.

MADRID The Spanish government expects annual growth near 3% from now until 2018, the year that should touch a balanced budget with a near zero deficit and reduce its debt faster than expected, said Thursday.

According to new forecasts, the fourth eurozone economy expected to grow 2.9% this year and 2016 and 3% for 2017 and 2018, announced Economy Minister Luis de Guindos, announcing the stability program for the period 2015-2018 submitted to Brussels to Madrid.

As usual in this government, these “are cautious projections as been seeing over time, but as always it is intended that the reality exceeds expectations, “he said.

On the other hand the public deficit, which should be lower than 3% (2.8%) of GDP in 2016 will reach 0.3% in 2018, when the country’s debt would be 93.2%, said his colleague Finance, Cristobal Montoro, showing that it will be reduced more quickly than announced so far.

The conservative government of Mariano Rajoy previously provided a public debt of 100.3% of GDP in 2015 (compared to 98.9% in the new forecasts), 101.5% in 2016 (vs. 98.5%) and 98.5% in 2017 (96.5%).

The Spanish public debt, which in 2007, before the crisis, was 36.3%, was shot with the bursting of the housing bubble and the accumulation of general government deficit.

Determined to tackle the problem, the government of Rajoy applied since coming to power in late 2011, a draconian austerity with an adjustment of 150,000 million euros in public funds over three years.

Also data unemployment, large persistent problem of the Spanish economy out of recession after nearly two years ago, were reviewed with a slight improvement.

So, 2015 is expected to be 22.1% rate instead 22.2% expected so far, according to data presented by De Guindos.

The unemployment should drop to 19.8% in 2016 to 17.7% in 2017 and 15.6% in 2018 According to these estimates.

“Spain, if projections are met, can leave behind the longer, more intense and deeper much the modern economic history of our country crisis,” said Minister of Economy .

mfh