Spain Increases Economic Contraction Forecast to 1.3%

Spain’s government has revised down its forecast for the Spanish economy this year, saying the level of contraction will likely be worse than previously predicted.

Madrid now expects the economy to contract by 1.3% in 2013, compared with its earlier estimate of -0.5%.

The announcement came as the government is due to unveil measures to try to boost the economy.

Spain’s unemployment rate hit 27.2% in the first three quarters of 2013.

This was the highest level on record in the country.

The government expects the unemployment rate to remain at this level this year, before falling to 26.7% in 2014.

It says the economy will return to growth next year, predicting expansion of 0.5% in 2014.

via BBC

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