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Spain's Zapatero dismisses gloomy economic forecasts

Dec 10, 2009, 12:08 GMT

Madrid - Spanish Prime Minister Jose Luis Rodriguez Zapatero on Thursday rejected negative economic forecasts for his country, saying Spain was about to emerge from recession. The goal was to create employment and to stabilize the budget 'as soon as possible,' Zapatero said a day after the rating agency Standard and Poor's downgraded Spain's financial outlook from stable to negative. Zapatero did not mention the evaluation by the agency, which pointed to Spain's lagging growth and relatively high budget deficit. Spain is bogged down in its worst recession for decades, with unemployment running at 18 per cent and the government expecting the economy to shrink by more than 3.5 per cent this year. The European Union expects the budget deficit to climb from about 6 per cent to 10 per cent of gross domestic product (GDP) in 2009. Zapatero said the government's economic reform plans would help Spain grow in a better way based on improved training, innovative sectors and a more flexible labour market. In 2010, Spain's public debt would be below the European average, the premier explained.

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Spain's Zapatero dismisses gloomy economic forecasts

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