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Spain PM says tensions could hit growth forecasts

Source: Reuters - Wed 14th Sep 2011

Spain's Prime Minister Jose Luis Rodriguez Zapatero said on Wednesday financial tensions over Greece may affect the official growth targets for 2011.

"We have a situation of financial tension, especial over Greece, which could affect our growth forecasts," Zapatero told Parliament.

The Socialists expect the economy to grow by 1.3% year on year in 2011, a target most economists believe is optimistic.

Zapatero also said he expects quarterly third quarter growth to be similar to that reported in the second quarter.

Spain's GDP grew 0.2% quarter on quarter in the second quarter.

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