Markets | Tue Nov 6, 2012 6:50am GMT

EU sets worse forecasts for Spain than government - El Pais

MADRID Nov 6 (Reuters) - The European Commission is forecasting a 1.5 percent decline in Spanish gross domestic product in 2013, significantly worse than the 0.5 percent contraction pencilled in by the Spanish government, El Pais reported on Tuesday.

Citing a draft of the forecasts which are due to be officially announced on Wednesday, the newspaper said the Commission sees the Spanish economy falling by 1.6 percent this year and growing by 0.5 percent in 2014.

This compares with the Spanish government's forecast for a 1.5 percent fall in GDP in 2012 and growth of 1.2 percent in 2014.

The Commission also has more negative forecasts for the Spanish budget deficit, predicting a deficit of 8 percent of GDP in 2012, 6 percent in 2013 and 5.8 percent in 2014.

Spain is forecasting a public deficit of 7.3 percent in 2012, 4.5 percent in 2013 and 2.8 percent in 2014.