Spain's economy, like many other European countries', has slowed sharply in the past six months. However, the growth rate remains ahead of the average for the EU zone.
Economists attribute the deceleration of the economy, following a prolonged growth phase, to external factors.
Maria Guardiet, a Madrid-based economist at Banco Santander Central Hispano, told the South China Morning Post that she expects '2.8 per cent growth for this year and 2.3 per cent next year'. Santander Central Hispano is one of Spain's largest banks and a global financial services group.
The government revised its growth forecast for the year from 3.2 per cent to 3 per cent, and has forecast 2.9 per cent economic growth for next year.
Last year was the the fourth consecutive year of expansion, with 4 per cent growth recorded. Spain's growth exceeded that of the euro zone as a whole.
The Spanish economy has become internationalised over the past 15 years, expanding beyond the euro zone. Spanish corporations have been extending their activities abroad, especially into Latin America.