Business

Spanish government predicts stronger economic growth

27 of March 2018

Tourists take photos of themselves and each other outside the Royal Palace in Madrid, Spain, Sunday, March 25, 2018. (AP Photo/Paul White),Tourists take photos of themselves and each other outside the Royal Palace in Madrid, Spain, Sunday, March 25, 2018. (AP Photo/Paul White)

The Spanish government is revising higher its forecast for economic growth this year, to 2.7 percent from 2.3 percent. Economy Minister Roman Escolano says the upgrade is due to an improving international economic climate, an upturn in business investment, and a return to stability in the restive region of Catalonia, where the central government has taken administrative control.

MADRID (AP) — The Spanish government is revising higher its forecast for economic growth this year, to 2.7 percent from 2.3 percent previously.

Economy Minister Roman Escolano says the upgrade is due to an improving international economic climate, an upturn in business investment, and a return to stability in the restive region of Catalonia, where the central government has taken administrative control.

Spain’s economy, the fourth-largest in the 19-country eurozone, has in recent years posted some of the fastest economic growth in Europe. Last year it reached 3.1 percent.

The new forecasts published Tuesday include a jump in expected domestic demand, up 2.3 percent compared with an earlier forecast of 1.8 percent. The budget deficit is predicted at 2.3 percent of GDP.