MADRID, Sept. 24 (Xinhua) - Spanish government would revise up the 2014 gross domestic product (GDP) growth forecast to 0.7 percent from the previous predicted 0.5 percent.

Spanish Prime Minister Mariano Rajoy confirmed Tuesday when speaking at the Spanish parliament during the government control session held at the Senate.

The forecast was in line with the prediction made by Spanish Saving Banks Association on September 16, which also said the Spanish economy would grow by 0.7 percent year on year in 2014.

The 2014 General State Budget will be approved at the cabinet meeting on Friday 27 and will include these new economic forecasts.

Rajoy said that the economic situation had improved but warned that the government had to be careful because there were still important imbalances that Spain should correct, such as reducing the deficit.

On Tuesday, the Ministry of Finance released the latest data on the state budget deficit that reached 4.62 percent of the country's GDP to 47.579 billion euros (64.167 billion U.S. dollars).

Rajoy's statements confirmed what he said in an interview published by The Wall Street Journal, where he claimed that "Spain is out of recession but not out of the crisis."

Rajoy said in the interview that the Spanish economy would grow between 0.5 percent and 1 percent, but ruled out predicting when the Spanish unemployment rate would start decreasing, which currently is above 26 percent. Endi

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