Economy set to grow by 2.3% says European Commission

THE European Commission (EC) has raised Spain’s growth forecast significantly for this year.

After reducing the country’s 2015 economic growth prospects from 2.1 per cent to 1.7 per cent late last year, Brussels is now predicting a growth of 2.3 per cent.

A report issued by the EC this Thursday (February 5) said that the Spanish economy began to grow in 2014 due to better financial conditions, increased confidence, a reduction in unemployment and falling oil prices.

The report said that the economy would continue to grow in 2016, predicting a 2.5 per cent rate. The Commission also said that job creation would rise during 2015.

The EC report is more optimistic than the International Monetary Fund (IMF) report, which recently forecast a 2 per cent growth for Spain for 2015.