Spain lowers 2019 growth forecast after tightening deficit target

MADRID: Spain's economic output was expected to expand by 2.2 percent in 2019, Economy Minister Nadia Calvino said on Thursday, down slightly from a previous forecast of 2.3 percent after the government set a stricter public deficit target.

The minister said it was aiming for a public deficit of 1.3 percent of gross domestic product this year, requiring sharper public spending restrictions than a previous shortfall goal of 1.8 percent.

The minority socialist government plans to reveal its 2019 budget draft on Friday and has said that if it is unable to pass it through parliament, where it needs accords from small, regional parties, it will turnover the 2018 spending plan.