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.
by RTT Staff Writer
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