Spain’s govt. lowers economic growth forecast to 2.3 percent

Spain's government has lowered its economic growth forecast for this year to 2.3 percent and reported a sharp rise in unemployment.

Finance Minister Pedro Solbes has revised the economy's growth rate from the previous forecast of 3.1 percent.

Solbes has said at a news conference Friday after the government's weekly Cabinet meeting that GDP growth forecast for 2009 has also been revised down to 2.3 percent, from 3.0 percent previously.

Unemployment rate rose rapidly in the first quarter of 2008, as activity in the once-buoyant construction sector slowed more than expected.

The National Statistics Institute said Spain's jobless rate rose to 9.6 percent in the first quarter, from 8.6 percent in the fourth quarter of last year.