Spain boosts growth outlook to 2.9 per cent

Madrid: Spanish economy is set to grow at a faster pace than previously forecast, Acting Economy Minister Luis de Guindos said on Sunday, even as caretaker Prime Minister Mariano Rajoy struggles to form a government and end seven months of political deadlock.
Speaking at the G-20 summit in Chengdu, China, De Guindos said the economy would grow 2.9 per cent this year, faster than the 2.7 per cent previously forecast. The economy expanded 3.2 per cent in 2015, the fastest pace in eight years, as it benefited from monetary stimulus and rising household demand as well as faster job creation and falling oil prices.
The revision comes as 61-year-old Rajoy, who extended his victory in a repeat vote on June 26, struggles to form a government because he lacks the necessary support in parliament to become prime minister. King Felipe VI is due to begin talks with political leaders this week to identify a candidate who can put together a majority.
Meanwhile, Spain is waiting to find out whether it will become the first EU member state to be fined for violating spending limits. Officials in Brussels concluded the nation did not take sufficient steps to narrow its budget deficit, which came in at 5.1 percent of gross domestic product last year, compared to a target of 4.2 per cent. On Sunday, Guindos reiterated Spain’s opposition to the fine.
The nation’s statistics office is due to present a preliminary estimate for second-quarter GDP on June 29 and job figures on June 28.