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IMF raises Spain growth forecast to 0.6% for 2014 and 0.8% for 2015

January 21, 2014

Washington , Jan 21 (EFE).- The International Monetary Fund on Tuesday revised its forecast for the growth of the Spanish economy over the next two years, raising its predictions to 0.6 percent for 2014 and 0.8 percent for 2015, up from its October forecasts of 0.2 percent and 0.5 percent, respectively. The IMF published these new figures in its current World Economic Outlook report, in which it says that the Spanish GDP contracted in 2013 by 1.2 percent, one-tenth of a percent less than it had calculated four months ago. The international institution thus confirmed the Spanish economy's move out of recession. The upward revision for Spain is the IMF's largest adjustment of its growth forecasts for the advanced economies along with that for the United Kingdom within the framework of a recovery in the Eurozone, which is emerging from two consecutive years of negative figures. The IMF predicts that the Eurozone will grow by 1 percent this year and 1.4 percent in 2015, both figures 0.1 percent more than forecast during the institution's annual meeting last October. However, the international body headed by Christine Lagarde acknowledges that the growth will be "modest" in the Eurozone, especially on the periphery, and it says that although the region has emerged from recession economic dangers persist. The report says that high public and private debt and the financial fragmentation of the Eurozone will put a damper on internal demand, while exports will contribute to growth. EFE afs/bp


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Source: EFE Ingles


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