Spain economy predicted to grow by solid 0.7 percent in Q4

IndustriesAssociated Press

Spain's Central Bank says strong job creation and buoyant domestic spending is likely to keep the economy growing by a quarterly rate of 0.7 percent in the last three months of the year.

The forecast released Wednesday is unchanged on the third-quarter rate, which was a slight slowdown from the 0.8 percent recorded in the previous three-month period.

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Spain emerged from recession in late 2013 and is now one of the European Union's fastest-growing economies, although its unemployment rate of 19 percent remains the EU's second-highest after Greece.

The bank also predicts that Spain's economy will grow by 3.2 percent in 2016 and by 2.5 percent next year.

Official fourth-quarter figures will be released on Jan. 30.