The Bank of Spain Governor Luis Maria Linde said on Wednesday that the Bank of Spain upgraded its economic growth forecast for 2015 for Spain. The Spanish economy is expected to expand at 3.1% in 2015, up from the previous forecast of 2.8%. The economic growth forecast was upgraded as domestic demand gathers momentum.

The Spanish economy is expected to grow 2.7% in 2016.

According to Linde, the economy probably expand at 1% in the second quarter. Inflation in Spain is expected to be above zero by the end of the year.

"The forecasts for what remains of the year and for next point to the maintenance of elevated dynamism, clearly superior to that of the majority of our partners in the euro area," the Bank of Spain governor said.