Spain PM: Economy to grow by 1 percent in 2014

MADRID (AP) - Prime Minister Mariano Rajoy has revised Spain's economy growth for 2014 upward to 1 percent and announced tax reduction reforms and job creation incentives to give the country a boost after punishing years of recession.

Rajoy told a parliamentary state-of-the-nation debate Tuesday that Spain had turned the corner thanks to his conservative government reforms and sacrifices made by Spaniards.

He said jobs would be created in 2014 but he would not be satisfied until the 26 percent unemployment rate is reduced substantially.

Spain had previously predicted 0.7 percent economic growth in 2014. Rajoy said it would grow again by 1.5 percent in 2015.

Spain's economy began to crumble in 2008 with the collapse of its bloated real-estate sector. It emerged from a two-year recession late last year.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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