Madrid - AFP
The Bank of Spain said Wednesday it expects the Spanish economy will expand by "around" two percent in 2015, in line with government forecasts for next year.
Spain, the eurozone's fourth biggest economy, which emerged from a two-year downturn in mid-2013, grew in the second quarter of 2014 at a faster-than-expected quarterly rate of 0.6 percent.
"The latest data point to a continuation of this trend from now until the end of the year, but at a slower pace," Bank of Spain Governor Luis Maria Linde told parliament
"That will allow the year-on-year growth rate in gross domestic product to come close to two percent in the last quarter, a rate at around, on average, the Spanish economy could grow in the whole of 2015," he added.
The central bank forecasts that the economy will grow 1.3 percent overall in 2014, in line with government projections, compared to a 1.2 percent contraction last year, as it bounces back after six years of crisis that brought it close to financial collapse.
The government's draft 2015 budget, which was approved by Prime Minister Mariano Rajoy's cabinet on Friday, predicts growth will accelerate to 2.0 percent in 2015.
The budget's forecasts surpassed earlier government estimates of 1.2 percent growth for this year and 1.8 percent for 2015.
Both the International Monetary Fund and the Organisation for Economic Cooperation and Development predict more modest growth.
They see the Spanish economy growing by 1.2 percent this year and by 1.6 percent in 2015.