After years of hard assessment, is Spain the IMF’s new favorite?

In just three months, the Washington-based institution has raised its Spanish growth forecast by half a percentage point, and added two tenths of a point to its 2016 predictions. Despite years of painful adjustment (wages cuts and job destruction) growing internal demand and a mild recovery of the construction sector are contributing to raise hope.

In spite of its powerful influence, the IMF has been known for its wrong forecasts too. As El País pointed out on Tuesday, comparison by the Esade business school of 24 expert analyses showed the IMF to have made some of the most erroneous predictions regarding the Spanish economy’s performance in 2014, predicting 0% growth in the fall when the real figure was 1.4%.

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