Spain cuts growth forecast to -1.3 per cent

Spain has cuts its 2013 growth forecast to -1.3 per cent from -0.5 per cent. However, this still remains higher than the -1.6 per cent predicted by the IMF and -1.4 per cent expected by the OECD. Meeting the EU budget deficit target has been delayed by two years until 2016.

Estimates suggest that unemployment will fall from 27.1 per cent now to 26.7 per cent in 2014 and will drop further to 24.8 per cent by 2016. Many are concerned that these expectations are overly optimistic, yet such a level would still be high in comparison with Spain's neighbours.