Spain will revise down its economic growth forecast for 2013 next week and seek more time from the European Union to reduce its budget deficit, as a recession cuts deeper than previously expected, according to reports.
by Andrew Trotman, The Telegraph:
Spain’s gross domestic product (GDP) will be forecast to shrink by 1pc, rather than 0.5pc, a government source told Reuters, adding that the ruling party intended to shift emphasis to growth rather than deficit reduction.
Spain is negotiating with the European Commission for more time to bring its deficit within 3pc of GDP, something it is currently expected to do by 2014, the source said.
Spain will increase its 2013 deficit target to 6pc of GDP, from an existing forecast of 4.5pc. The figures on growth and the deficit could still vary by one or two decimal points, depending on the outcome of talks with the Commission, the source said.
Please follow SGT Report on Twitter & help share the message.