The International Monetary Fund (IMF) has revised its growth estimates upwards for the Spanish economy for the next two years, so Spain is now the European country which is growing the most, and number two amongst the developed markets, after the US.
IMF and Spain
What was a surprise in the IMF’s updated growth estimates was the correction made to the growth forecast for Spain this year (-0.1 pp to 2.4%) given “the impact of greater political uncertainty on confidence and demand.”
The Corner | April 18, 2015 | The IMF raised growth expectations for all the major economies in the Eurozone – especially Spain to 2.5% in 2015 and 2% in 2016- and for Japan. The new figures, the sixth improved forecast in a row– are more aligned with Madrid expectations (2%, although the Minister of Economy even forecasts a 3% growth). Low oil prices, the euro depreciation and the ECB’s monthly liquidity shots are the three aces of the Spanish government, who is hoping to retain the power in the next general election despite the popularity of new parties.