European Commission forecasts 2.1% growth for Spain in 2015
Monday, May 5, 2014 @ 2:56 PM
The European Commission (EC) has today released a revised forecast for economic growth in the European Union over the next two years, in which it points to a 1.1% and 2.1% increase respectively in Spain's GDP.
The European Commission's spring forecast points to a continuing economic recovery in the European Union following its emergence from recession one year ago. Across the EU as a whole, real GDP growth is set to reach 1.6% this year, and 1.2% in the euro area, improving further in 2015 to 2.0% and 1.7% respectively. The forecast rests on the assumption that the agreed policy measures will be implemented by Member States and the EU, taking forward the necessary adjustment.
Labour market conditions started to improve in the course of 2013 and more job creation as well as a further decline in unemployment rates should follow (to 10.1% in the EU and 11.4% in the euro area in 2015). Unemployment remains higher than the EU average in Spain, but is set to fall to 25.5% this year, and to continue to fall to 24% in 2015.
Inflation is expected to remain low, both in the EU (1.0% in 2014, 1.5% in 2015) and in the euro area (0.8% and 1.2%). Overall, domestic demand is expected to become the key driver of growth over the forecast horizon. Consumer spending should progressively add to growth as real income benefits from lower inflation and the stabilising labour market. The recovery in investment should continue to support growth, with gains in both equipment and construction investment. The contribution of net exports is expected to diminish over the forecast horizon.
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