Prime Minister Mariano Rajoy has revised Spain's economic growth forecast upward for this year and next and said the improved circumstances allowed him bring forward a tax reduction plan.

Rajoy says the economy will grow 3.3 this year and 3 percent in 2016, up from the previous 2.9 percent estimate for both years.

Rajoy said Thursday he could now bring forward by six months an income tax reduction plan he estimated will put 1.5 billion euros ($1.7 billion) back into people's pockets.

Spain emerged from a double-dip recession at the end of 2013 but is now among the fastest-growing economies in Europe although unemployment is still at 24 percent.

Rajoy hopes the recovery can stem his party's ratings slump in time for elections to be held by the year's end.