OECD revises up Spain's economic growth forecast for 2016

The Organization for Economic Cooperation and Development (OECD) has revised up Spain's economic growth forecast for 2016, the organization reported on Monday.

The OECD forecast a gross domestic product (GDP) growth of 3.2 percent for 2016, which was 0.4 percent up on the last prediction made by the organization in July.

Meanwhile, the country's economy is expected to grow by 2.3 percent in 2017, a forecast that it has not changed since July, and by 2.2 percent in 2018, the organization said.

Spain's public debt would reach 101.3 percent of the country's GDP this year, 102.1 percent in 2017, and 102.2 percent in 2018. Spain's public deficit is anticipated to stand at 4.6 percent by the end of this year, to fall to 3.6 percent in 2017 and 2.9 percent in 2018.

The OECD pointed out that the reason for revising up Spain's economic forecast was a stronger economic context and the reforms carried out by the government. Also, the organization recommended more measures to increase the country's competitiveness and investment in order to boost productivity.

"Spain is receiving the benefits of its reforms," OECD General Secretary Angel Gurria said in a press conference held in Madrid. "Now more reforms are needed, reforms, and then, reforms of reforms," he stated.

The OECD also warned about the problems involving Spain's political situation whose government has not got a majority to rule, a fact that could undermine the implementation of future reforms. Endit