Spanish economy expected to recover at the end of the year

The Bank of Spain said on the 26th, the Spanish economy to recover later this year, next year will be moderate growth, but the budget deficit will remain around current levels.

The economy is expected to report on the latest release of the Bank of Spain said, as the euro zone's fourth largest economy, Spain's economy will remain in recession, GDP will shrink by 1.5% this year, higher than previously expected by the Government twice. The report analyzes these differences because the country's economic recovery is possible later this year or will be weaker than expected.

Recently, the Spanish economy showing some encouraging momentum, such as the decline in public deficits, long-term government bonds lower risk premium, and increase the confidence of foreign investors. In this regard, the Bank of Spain said the Spanish economy will grow about 0.6% in 2014, strong exports will lead to increase in the current account surplus. At the same time, household debt is too heavy will continue to further curb consumption, working-class may be difficult to benefit from the economic recovery, the average wage declined slightly.