Awwal 02, 1432 H/April 6, 2011, SPA -- Spain is raising its unemployment rate forecast for 2011 to 19.8 percent from 19.5 percent, but predicting that economic growth for the year will be 1.3 percent, AP reported. Finance Minister Elena Salgado said Wednesday continuing deterioration of the labor market forced the change, adding that the government does not expect the rate to fall until 2012. The rate is currently 20.3 percent. Salgado lowered economic growth estimates for 2012 from 2.5 percent to 2.3 percent, and from 2.7 percent to 2.4 percent for 2013. Spain's central bank said the economy will grow this year by just 0.8 percent and unemployment will remain around 20 percent. Spain is emerging from nearly two years of recession and fighting investor fears it might may need a bailout like Greece and Ireland did.
