The Spanish economy will grow less in real terms than the 3 percent forecast by the government for 2005, but job creation will continue at a firm pace, Economy Minister Pedro Solbes said in an interview published on Sunday.
Solbes said in late October that he thought oil prices would remain higher than in recent years and could dent expansion.
The government's forecast was calculated in July using an oil price of $33.50 a barrel, while US light crude futures have recently climbed to a record high above $55 a barrel.
Asked if growth would be below the forecast, Solbes told La Razon: "In real terms, yes, and in nominal terms, not so much."
"The impact on income will be very limited. With growth of three percent we would be talking about the creation of 320,000 jobs. If it is a little less, it would be closer to 300,000 jobs, but either way, 2005 will be a good year for employment," the newspaper quoted him saying. The European Commission recently cut its forecasts for Spanish growth next year to 2.6 percent from 3.3 percent.
Solbes said he opposed using subsidies or lowering oil taxes to mitigate the impact of higher prices, but would consider other measures.