Bank of Spain revises up Spain's 2015 economic forecast

Bank of Spain on Thursday revised the country's 2015 economic forecast for the better from a 2.0-percent gross domestic product (GDP) growth to 2.8 percent.

In its March economic bulletin, Bank of Spain highlighted that imbalances within the economy, such as the country's public deficit and unemployment rate, had improved, along with better access to finance and better economic perspectives of the euro zone in general.

These factors led the bank to revise up its economic predictions.

Bank of Spain reported that domestic demand and exports would increase in 2015 and 2016, boosting Spain's economy. It also highlighted that private consumption was expected to increase thanks to job creation and fiscal reform, and apart from this, the low prices of oil.

Oil prices were expected to increase slightly in 2016 leading to a 2.4-percent private consumption increase, as opposed to the expected 3.3 percent of this year.

Employment will increase by 2.7 percent this year and by 2.6 percent in 2016, the bank said, which would contribute to an increase in families' purchasing power.

According to the Bank of Spain, the country's public deficit would stand at 4.5 percent in 2015, 0.2 percent above the deficit target, and at 3.9 percent in 2016, remaining above the 2.8 percent mandated by the European Union (EU).

Bank of Spain reported that, in the first quarter of the year, the economy grew by 0.8 percent when compared with the last quarter of 2014, while on a year-on-year basis, the economy grew by 2.5 percent.

Meanwhile, it expected a 2.7-percent growth for 2016. Endit