Wires

Spanish consolidation pace to reflect econ growth rate-finmin

LUXEMBOURG, Oct 9 (Reuters) - Euro zone finance ministersbelieve that Spain's fiscal consolidation should take intoaccount the rate of economic growth, Spanish finance ministerLuis de Guindos said on Tuesday, adding Madrid would work tolimit economic recession.

"There was a positive evaluation (by euro zone financeministers of Spain's 2013 budget), of Spain's economic policyand the need to carry out a fiscal adjustment that is sensitive,sensible to the economic situation in the country," de Guindostold reporters.

The International Monetary Fund forecast late on Monday thatSpain will miss its deficit targets in 2012 and 2013 as theeconomic contraction next year will be much bigger than theSpanish government has forecast.

The IMF said in its fiscal monitor report that the country'sdeficit would reach 7 percent of GDP in 2012 and 5.7 percent in2013, compared with European Union-agreed targets of 6.3 percentof GDP this year and 4.5 percent of GDP next year.

The government has based its budget plan for next year on arecession of 0.5 percent while the IMF forecast a recession of1.3 percent in the country in 2013 after a 1.5 percentcontraction in 2012.

"The only thing I can say (about the IMF's forecasts forSpain) is to try to avoid that they happen," de Guindos said.

"Logically, we are working on the basis that such negativeforecasts are not met," he said.

(Reporting By Robin Emmott, writing by Jan Strupczewski)

((jan.strupczewski@thomsonreuters.com; +32 2 287 68 37; ReutersMessaging: jan.strupczewski.reuters.com@reuters.net))

Keywords: SPAIN CONSOLIDATION/