The Spanish economy will grow 0.9 percent this year and 1.9 percent in 2014, BBVA, the country's No. 2 bank, said in a report released Tuesday.
The rhythm of growth will be enough to create jobs in a sustained manner but it will not reduce the unemployment rate significantly, given that this will stand at 25.6 percent in 2014 and only decline to 24.8 percent in 2015, the bank's research unit said.
The study found that there still exist risk factors that could inhibit the recovery and the bank says it is "indispensable" for the European Union to establish a banking union.
BBVA also called on the European Central Bank to apply a consistent target for inflation in the euro zone.
The report says it is fundamentally necessary to maintain the "spirit of reform" and adds that fiscal reform "should spur job creation, foster national saving, attract foreign investment and increase growth potential."
With regard to spending by Spanish households, the study forecasts that this will grow by 0.9 percent in 2014 and 1.3 percent in 2015, and it predicts that domestic demand will cease to be a drag on private-sector investment.
This, along with the "good performance" of exports, will provide a firm basis, BBVA says, for sustained growth. EFE