Spain's economy to grow by 3.2 pct in 2016: Bank of Spain

Spain's economy will grow by 3.2 percent this year, according to last predictions published on Thursday by the Bank of Spain in its Economic Bulletin.

The Bank of Spain has revised up its economic predictions for the country from the previous 2.8 percent growth forecasted in June to the current 3.2 percent. The bank kept its forecasts for 2017 and 2018 at 2.3 percent and 2.1 percent respectively.

The bank also reported that in the third quarter of the year, the Spanish economy would grow by 0.7 percent.

The bank warned about the uncertainty caused by the lack of government in Spain, saying that without further fiscal measures Spain would not meet 2016 deficit target agreed with Brussels, which stands at 4.6 percent.

The bank said that public deficit would stand at 4.9 percent in 2016, at 3.6 percent in 2017 and at 3.1 percent in 2018.

The Spanish institution also mentioned the consequences of Brexit, instability on emerging economies and geopolitical conflicts as factors that could undermine Spain's growth.

Meanwhile, Spain's unemployment rate would fall below 20 percent this year to 19 percent, the bank said, decreasing to 17.8 percent in 2017 and to 16.7 percent in 2018. Meanwhile, the country's inflation rate would stand at -0.3 percent in 2016, 1.5 percent in 2017 and 1.6 percent in 2018. Endit