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Spanish economy to grow by 2.1 pct in 2015: FUNCAS

Xinhua, January 15, 2015 Adjust font size:

The Spanish economy will grow by 2.1 percent in 2015, according to last predictions published on Wednesday by the Spanish Saving Banks Association (FUNCAS).

FUNCAS revised up its economic forecasts for Spain, whose economy is expected to grow by 1.4 percent in 2014 and by 2.1 percent in 2015.

According to the Association, the economy grew by 1.4 percent in 2014 due to a better performance of domestic demand. However, external demand dropped, FUNCAS said.

A better performance of Spain's domestic demand will also have an impact on 2015 growth rate. According to FUNCAS, domestic demand will grow by 2.4 percent in 2015, while external demand will fall by 0.3 percent.

They expect employment to increase by 1.7 percent, helping unemployment rate to fall to 22.8 percent, while productivity will increase by 0.4 percent in 2015.

Finally, FUNCAS said public deficit will stand at 4.5 percent in 2015, 0.3 percent above the deficit target.

2014 forecast published on Wednesday by FUNCAS coincides with the figure provided by Prime Minister Mariano Rajoy, the same day from Athens, where he went to support Greek Prime Minister Antonis Samaras before Greece's general elections.

Rajoy said Spain's economy grew by 1.4 percent in 2014, 0.1 percent more than the government predictions, adding that Spain had created 400,000 job opportunities last year.

Rajoy defended the reforms carried out by his government. He described them as "hard, difficult and complicated" but "necessary and indispensable." Endit