Spain's public deficit at 7.3 pct of GDP in 2012: report

2013-01-30 23:54:59 GMT2013-01-31 07:54:59(Beijing Time)  Xinhua English

MADRID, Jan. 30 (Xinhua) -- Spain's public deficit stood at 7.3 percent of gross domestic product (GDP) in 2012, said the Spanish Saving Banks Foundation (Funcas) in a report on Wednesday.

The figure is higher than the 6.3 percent required by the European Union (EU).

According to the report, written by its Director of Statistics Angel Laborda, the country's administration deficit, which consists of central, regional and local administration, experienced a drop of 1.7 percentage points in comparison with 2011.

Laborda said the central administration met its deficit target of 4.5 percent in 2012 while regional governments and social security did not.

Laborda predicted that Spain's public deficit will reach 5.6 percent of GDP this year, which is above the 4.5 percent forecasted by the government.

Specifically, central administration deficit will be 3.5 percent of GDP, while regional and local governments' deficit will be 1 percent and 0.1 percent respectively, according to Laborda's report.

The government of Mariano Rajoy expects to have new data about the deficit by mid-February, Finance Minister Cristobal Montoro said on Tuesday.

The EU economic and monetary affairs commissioner Olli Rehn did not rule out the possibility of adapting the deficit requirements to the context of recession when he was in Madrid earlier this week.

Add Comment
Please read our Terms of Service. Messages that harass, abuse or threaten others; have obscene or otherwise objectionable content; have spam, commercial or advertising content or links may be removed.