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Bank of Spain sees growth but high joblessness

Wednesday - 3/26/2014, 7:45am  ET

Luis Dominguez Quintana, 77 years old, disabled, sits next to his crutches as police enter his apartment to evict him in Madrid, Spain, Tuesday, March 25, 2014. Dominguez Quintana bought a euro 286,000 ($386,000) apartment by taking a mortgage with Bankia bank in 1996 but stopped paying due to his financial situation in 2009, after Dominguez Quintana lost his business in the construction sector and his properties got foreclosed. (AP Photo/Andres Kudacki)

MADRID (AP) -- The Bank of Spain predicts the economy will grow by 1.2 percent in 2014, slightly above government and EU forecasts, though unemployment is expected to dip only slightly from its near-record levels.

In its monthly report released Wednesday, the bank said that despite the economic recovery, the unemployment rate of 26 percent should edge down to 25 percent this year and to 23.8 percent in 2015.

It said gross domestic product should increase by 1.7 percent in 2015.

Spain emerged from a double-dip recession in the third quarter of 2013.


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