MADRID, Oct 18: Spain’s GDP growth could fall next year to 2.8 per cent from an expected 3.1 per cent due to the global financial crisis, a study by the country’s second largest bank, BBVA, said on Thursday.

“After average growth of 3.8 per cent in 2007, the deceleration will continue, to reach 2.5 per cent at the end of next year, which would see an annual average of 2.8 per cent in 2008,” the study said.

It said the figure represents a downward revision from its previous prediction of 3.1 per cent.

“The current deceleration of the economy is prior to the turbulence which began this summer on the international financial markets,” it said.

But it said “the intensity and duration of the liquidity crisis is more than initially predicted, which is exerting downward pressure on the real economic growth perspectives.”

On Wednesday, the International Monetary Fund slashed its 2008 global economic forecast, warning that turbulence stemming from a crisis in the US housing sector could crimp growth worldwide.

The world economy is expected to expand 4.8 per cent next year after a 5.2 per cent pace projected for 2007, the IMF said in its twice-yearly World Economic Outlook (WEO) report.

For Spain, the IMF forecast growth of 2.7pc in 2008, against 3.4 per cent prior to the crisis.

The Spanish government officially predicts growth of 3.3 per cent, but Economy Minister Pedro Solbes in late September said it would be closer to 3.0 per cent or less.—AFP