Supported by an improved financing environment that bolsters economic recovery, the European Commission has raised its 2014 economic growth forecast for Spain from the previous 0.5% to 1%, and projects a growth rate of 1.7% for next year.
The European Commission believes that Spain's macroeconomic rebalancing will continue, the employment situation will improve, and the unemployment rate will gradually decline, although government debt is expected to rise.
In 2013, Spain's fiscal deficit accounted for 7.2% of its gross domestic product (GDP), and even excluding bank bailout funds, the ratio remained as high as 6.7%.
Due to the improved macroeconomic outlook, Spain's fiscal deficit is expected to be controlled at 5.8% in 2014. Additionally, it is projected that Spain's unemployment rate will be 25.7% this year and 24.6% next year, while the public debt-to-GDP ratio will reach 98.9% and 103.3%, respectively.