MADRID (AP) — Spain's central bank is forecasting a lower growth rate and higher deficit than predicted by the government as the country struggles to recover from recession.

The bank says it expects the economy to grow 0.8 percent this year, against the government estimate of 1.3 percent.

It says the deficit will be 6.2 percent of gross domestic product, exceeding the government's target of 6 percent.

After nearly two years of recession, Spain is fighting investor fears it will be unable to manage its debt and may need a bailout like Greece and Ireland. It pledges to reduce its deficit to within the European Union limit of 3 percent by 2013.

The bank said Wednesday it expects unemployment to remain around the 20 percent mark until after 2012.