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| Version 1 | Version 2 |
|---|---|
| Spain revises down its economic forecast | Spain revises down its economic forecast |
| (34 minutes later) | |
| Spain's government has revised down its forecast for the Spanish economy this year, saying the level of contraction will likely be worse than previously predicted. | Spain's government has revised down its forecast for the Spanish economy this year, saying the level of contraction will likely be worse than previously predicted. |
| Madrid now expects the economy to contract by 1.3% in 2013, compared with its earlier estimate of -0.5%. | Madrid now expects the economy to contract by 1.3% in 2013, compared with its earlier estimate of -0.5%. |
| The announcement came as the government is due to unveil measures to try to boost the economy. | The announcement came as the government is due to unveil measures to try to boost the economy. |
| Spain's unemployment rate hit 27.2% in the first three quarters of 2013. | Spain's unemployment rate hit 27.2% in the first three quarters of 2013. |
| This was the highest level on record in the country. | This was the highest level on record in the country. |
| The government expects the unemployment rate to remain at this level this year, before falling to 26.7% in 2014. | The government expects the unemployment rate to remain at this level this year, before falling to 26.7% in 2014. |
| It says the economy will return to growth next year, predicting expansion of 0.5% in 2014. | |
| Structural reforms | Structural reforms |
| The expected stimulus announcements will be watched closely amid a growing debate in Europe about whether austerity plans should be reined back. | The expected stimulus announcements will be watched closely amid a growing debate in Europe about whether austerity plans should be reined back. |
| Spain saw violent anti-austerity protests on Thursday, with police reporting a number of injuries and the arrest of people suspected of planning to burn down a bank. | Spain saw violent anti-austerity protests on Thursday, with police reporting a number of injuries and the arrest of people suspected of planning to burn down a bank. |
| This came on the day official figures showed that unemployment in the eurozone's fourth-largest economy topped 27% in the first quarter of 2013. Unemployment reached 57.2% among people under 25 years old, the National Statistics Institute said. | This came on the day official figures showed that unemployment in the eurozone's fourth-largest economy topped 27% in the first quarter of 2013. Unemployment reached 57.2% among people under 25 years old, the National Statistics Institute said. |
| With Spain's housing bubble burst and the economy contracting, Mariano Rajoy's conservative Popular Party swept to power in a landslide general election win in November 2011. | With Spain's housing bubble burst and the economy contracting, Mariano Rajoy's conservative Popular Party swept to power in a landslide general election win in November 2011. |
| The government has reformed the labour laws to make it easier to hire and fire workers, and imposed tough austerity measures to cut the deficit and save the country 150bn euros ($195bn; £126bn) by 2014. | The government has reformed the labour laws to make it easier to hire and fire workers, and imposed tough austerity measures to cut the deficit and save the country 150bn euros ($195bn; £126bn) by 2014. |
| The economy contracted by 1.37% last year, the second-worst annual decline since 1970. | The economy contracted by 1.37% last year, the second-worst annual decline since 1970. |
| Measures expected to be announced on Friday include changes to the public pension system to speed up a planned rise in the retirement age, and an end to inflation-linked reviews of pension payments. | Measures expected to be announced on Friday include changes to the public pension system to speed up a planned rise in the retirement age, and an end to inflation-linked reviews of pension payments. |
| There may also be a review of unemployment benefits and measures to boost small business growth. | There may also be a review of unemployment benefits and measures to boost small business growth. |
| Spain is negotiating with European policymakers for more time to reduce its spending gap, with a decision expected by the end of May. | Spain is negotiating with European policymakers for more time to reduce its spending gap, with a decision expected by the end of May. |