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January 24, 2014

Good forecasts for the Spanish economy

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IMF – The International Monetary Fund – presented its forecasts for economic growth for countries of Europe Union for the next 2 years . For Spain , the figures were not only positive , but significantly bigger than the initial forecast made in October 2013 . This time IMF predicts growth of Spanish economy by 0.6 % in 2014 and 0.8% in 2015, compared to the previously published 0.2 % and 0.5% respectively . Given that the European authorities were mistaken for just one -tenth in predicting outcome of Spain's GDP in 2013, which decreased by 1.2 %, we should pay big attention to these forecasts of IMF. In 2013 Spain formally withdrew from the technical regression, and the economic growth was by 0.3 % in the fourth quarter of 2013 , although the overall total for 2013 still remains negative.  Currently Spain , along with Britain , received from IMF the most favorable forecasts to development and economic growth.

Thus, published  this week forecasts of IMF became three times larger than the previous ones, made by the same European Institution, but in October 2013 . At the same time, the economic forecast of the country's current government in Spain , led by Mariano Rajoy , differs from those in a big way. Namely, the Minister of Economy of Spain, Luis de Guindos, presented the prognostic information that protects the Ministry of Economy for 2014 and 2015 , according to which the Spanish economy is supposed to make an increase of 0.7 % and 1.2 %, respectively.

The International Monetary Fund, headed by Christine Lagarde, notes that economic growth in the euro zone in the coming years will be “moderate”. But the fact that the euro area is in the process of recovery of economic activity, remains undisputed. Which is confirmed by the data for the 2013 of IMF, and also with the optimistic forecasts for Europe. In general , European growth will be 1 % in 2014 and 1.4% in 2015. These figures, of course, sound very promising, after two years of negative results in all countries of the Eurozone.

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