The ratings on The Kingdom of Spain reflect: Continued fiscal consolidation, as reflected by an estimated general government deficit of 0.3% of GDP in 2000, less than the 0.8% original target. The impressive reduction in the general government deficit by 4.6 percentage points of GDP since 1996 has relied on tight expenditure control, declining interest payments, and strong revenues. The political commitment to pursue further fiscal adjustment remains resilient, with the government aiming for a fiscal balance in 2001 and small surpluses from 2002. Buoyant economic performance, as demonstrated by GDP and employment growing above the EU average since 1996, which has promoted real economic convergence with wealthier EU partners. Annual output has increased on average by 3.8% since 1996,
