Spain Expected to Experience 2.9 Percent Growth in 2016 – Economy Minister, Reuters

MADRID (Reuters) – Spain’s economy is projected to grow by approximately 2.9 percent in 2016, surpassing the current official target of 2.7 percent. However, acting Economy Minister Luis de Guindos cautioned that growth in 2017 could face challenges due to global economic slowdown.

During the G20 summit in Chengdu, China, de Guindos mentioned that preliminary macroeconomic forecasts suggest a stronger growth rate of 2.9 percent for 2016, which will inform the upcoming government’s budget planning.

Spain is currently grappling with the formation of a government following two inconclusive elections within six months. While de Guindos did not specify a growth figure for 2017, he acknowledged the potential impact of a deceleration in the euro zone. The country’s forecast for next year’s growth stands at 2.4 percent.

Additionally, Madrid is facing sanctions from the European Union for not sufficiently reducing its deficit in 2015, leading to a breach of fiscal rules.