Spain forecasts 1.3% contraction in 2013

MADRID (AFP) - Spain's government forecast Friday that the eurozone's fourth-biggest economy will shrink by 1.3 per cent in 2013, and return to growth of 0.5 per cent in 2014.

Unemployment will reach 26.7 per cent over 2014 and ease back to 25 per cent in 2015, the government added in a statement announcing its latest crisis economic reforms.