Spain raises growth forecast on consumer confidence

Spanish Prime Minister Mariano Rajoy raised his government’s forecast for economic growth in the euro region’s fourth-largest economy as consumer spending accelerates.

The country’s output will expand 2.4% this year compared with a 2% projection set out in the budget in September, Rajoy said in parliament opening the annual state-of-the-nation debate.

Consumption is set to grow about 3% and the current account will post a surplus for the third straight year, he said.

“We are entering in a phase of expansion. It’s time to consolidate the exit from the crisis,” said Rajoy.

Spain is growing at the fastest pace since 2007 after easing rules for hiring and firing workers, reducing subsidies to renewable power producers and providing more than €122bn of rescue facilities for public administrations.

The prime minister is embarking on an electoral marathon that begins in Andalusia next month and will include votes in 8,000 town halls and 15 out of 17 regions before a general election due around the end of the year.

The government forecast compares with the European Commission’s 2.3% projection and is above the median estimate of 2.1% in a Bloomberg News survey of 46 analysts.