- OP Xtreme
- Business & Finance
- Crime & Law
- Food Drink
- News Features
- Eating Out
- Andalucia Property Search
IMF foresees two more years of recession in Spain
• IMF boss Christine Lagarde has
THE International Monetary Fund (IMF) has predicted two more years of recession, saying that Spain’s GDP will shrink by 1.7 per cent this year with a budget deficit of 6.8 per cent.
This despite previous IMF estimates that Spain’s economy would grow 1.1 per cent, and Spain’s own intention to achieve a budget deficit of just 4.4 per cent.
“Spain will respect the deficit target. Today that is 4.4 per cent, and Spain will respect that target,” said Prime Minister Mariano Rajoy.
IMF boss Christine Lagarde said that without a ‘larger firewall’, both Italy and Spain could be forced into a solvency crisis.
Predictions are that Spain and Italy will remain in recession throughout 2012 and also in 2013 – although the GDP fall in 2013 is more promising , at 0.3 per cent.
The IMF also praised the “substantial” spending cuts and tax increases adopted by Spain’s new PP government in an effort to bring down the deficit.
Reader Comments »
Messages will be moderated or deleted if they:
• Are considered likely to disrupt, provoke, attack or offend others
• Are racist, sexist, homophobic, sexually explicit, abusive or otherwise objectionable
• Contain swear words or other language likely to offend
• Break the law or condone or encourage unlawful activity. This includes breach of copyright, defamation and contempt of court
• Advertise products or services for profit or gain
• Are seen to impersonate someone else
• Include contact details such as phone numbers, postal or email addresses
• Describe or encourage activities which could endanger the safety or well-being of others
Latest news from the Olive Press...
Police make two record drug hauls in one week…