MADRID, Sept 9 (Xinhua) -- The Spanish economy would grow by 1 percent in 2014, according to predictions published on Monday by the Spanish Saving Banks Foundation (Funcas).
Funcas revised up its economic predictions for 2013 and 2014 and explained that Spain's economy would fall by 1.2 percent in 2013 as opposed to the previously predicted 1.5 percent, while it would grow by 1 percent in 2014 as opposed to the 0.7 percent expansion previously predicted.
Funcas predictions are more optimistic than those of the Spanish government which said the country's economy would suffer a 1.3 percent fall in 2013 and see a 0.5 percent expansion in 2014.
However, the International Monetary Fund (IMF) said Spain's economy would not grow until 2015.
Funcas said the economic situation that surrounds Spain's economy is better: better expectations about the Eurozone's economic growth, more exports, less spending cuts and the low level of the Spanish risk premium (at around 256 points).
Funcas reported that domestic demand would increase with private consumption growing slightly in 2014, although facing some problems because of high unemployment and lower salaries of Spaniards.
Meanwhile, public consumption will remain low due to the deficit target required by Brussels.
However, according to Funcas, Spain will not fulfill the deficit target agreed with the European Union (EU). The deficit will reach 6.8 percent in 2013 and 6 percent in 2014, higher than the required 6.5 percent for 2013 and 5.8 percent for 2014.
Funcas also predicted an unemployment rate of 26.4 percent for 2013 and 25.8 percent for 2014, when it said employment will start growing.
The Spanish government expects the country's economy will start growing slightly in the last quarter of 2013, although unemployment will remain high in the coming years.