The Spanish economy is likely to grow by 2.6 percent in 2018, according to predictions published by the Spanish government on Monday.

The latest prediction is 0.1 percentage point lower than the previous estimate and was announced in a press conference held after a cabinet meeting.

For 2019, the Spanish government predicted growth of 2.3 percent, which is also 0.1 percentage point lower than the previous estimate.

The government blames the lower expectations on the export sector, which will see a contraction of 0.1 percent in 2018 and which will not contribute to growth in 2019.

Despite the more pessimistic expectations for 2018 and 2019, Spain remains optimistic that the number of people out of work will continue to fall, with an unemployment rate of 15.5 percent at the end of the current year, which will fall to 13.8 percent by the end of 2019.

Meanwhile, the deficit will end 2019 at 1.8 percent of GDP, before falling to 1.1 percent in 2020 and going down to 0.4 percent by the end of 2021.

Spanish Economy Minister Nadia Calvino explained that the predictions were "prudent" and that they also bore in mind the possible effects of Brexit and other problems which could arise in the international markets.

The new predictions form part of the new Budget proposals that the Spanish government also presented to the European Union on Monday.