Spain insists economy will improve in 2013

The Spanish government on Friday insisted its economy would improve in 2013, according to the statement by Spanish Economy Minister Fernando Jimenez Latorre. Jimenez Latorre told parliament while analysing the 2013 general state budget the Spanish economy was growing more positively than initially expected. Contrary to the statements of Bank of Spain Governor Jose Maria Linde on Thursday, Jimenez Latorre said, "There is nothing to make us think Spain is not going to meet its deficit targets." But he added risk could never be gotten rid of and that predictions were difficult to make. "So far, the Spanish economy has shown signs of resistance," which is why the government will not change its prediction now, Jimenez Lattorre stated. The Spanish government predicts GDP will contract by 0.5 percent in 2013, while international organizations put the figure closer to 1.5 percent. To meet Brussels' rules, Spain is faced with the task of reducing its budget deficit to 6.3 percent in 2012 and 4.5 percent in 2013 from its current 7.4 percent.