MADRID (Reuters) - The European Commission has raised its forecast for 2014 Spanish economic growth to 1 percent, and sees the country meeting its deficit target this year after being given more time by Brussels, El Pais reported on Tuesday.
The newspaper cited a draft of updated economic forecasts the commission is due to publish later on Tuesday. It had previously seen Spain's economy expanding 0.5 percent this year.
According to El Pais, the EU executive forecasts Spain's national fiscal deficit will reach 5.8 percent of gross domestic product at the end of 2014, in line with the target agreed last year.
Prime Minister Mariano Rajoy made massive spending cuts in 2012, but since then has banked on a return to economic growth to boost tax revenue and plug the budget gap.
The commission is due to publish its winter economic forecasts for all 28 EU member states at 1245 GMT.
(Reporting by Fiona Ortiz; Editing by Julien Toyer, John Stonestreet)