The Spanish government cut its economic forecast on Friday and sees the recession extending into next year as it adopts more austerity measures.
The government now expects the economy to shrink 0.5 percent in 2013, in contrast to its earlier forecast for a growth of 0.2 percent. The economy is expected contract 1.5 percent this year, slightly less than the 1.7 percent decline predicted earlier.
The Budget Minister Cristobal Montoro said the economy is forecast to grow 1.2 percent in 2014 and 1.9 percent in 2015.
The unemployment rate is expected to be 24.6 percent this year. The country has the highest jobless rate in the euro area. Further, the minister said the government's spending limit for 2013 would be EUR 127 billion.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.