Spanish GPD to shrink by 1.6%

The International Monetary Fund (IMF) has projected Spain's Gross Domestic Product (GDP) to decrease by 1.6 percent in 2013 but would rebound by 0.7 percent next year. An IMF report, cited by local media Tuesday, said unemployment would continue to increase in Spain to reach 27 percent by end of this year, but to slightly decline to 26.5 percent in 2014. The IMF said economy of the euro zone was fragile coupled with short-term risks especially with the economic situation of Cyprus and political stalement in Italy. It predicted the euro area's economy to shrink by 0.3 percent this year. Spanish prime minister Mariano Rajoy, at a news conference early this month, said the national economy would start recovering in 2014 with the GDP growing by 1.4.