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MADRID (Reuters) - Spain’s economy may grow around 2.9 percent in 2016, up from the current official target of 2.7 percent, although 2017 could come under pressure due to lower global growth, acting Economy Minister Luis de Guindos said on Sunday.

“New macroeconomic projections, which would be a first step prior to the elaboration of a future budget by the (next) government, point to a stronger growth rate of 2.9 percent in 2016,” de Guindos told reporters on the sidelines of the G20 summit in the Chinese city of Chengdu.

Spain is struggling to form a government after two indecisive elections in six months.

Though de Guindos did not provide any figure for economic growth in 2017 he recognized that a slowdown in the euro zone could have an impact. The country is forecasting growth of 2.4 percent next year.

Madrid faces European Union sanctions for breaching fiscal rules in 2015, when it did not sufficiently cut its deficit.