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Worse to come for Spanish economy
• Storm clouds continue to linger over Spain's economy
SPAIN’S economy is set to get worse this year, according to the International Monetary Fund (IMF).
GDP is expected to shrink by 1.5% in 2013, slightly more than the 1.4% contraction that was predicted in autumn last year.
The figure is in contrast to the IMF’s forecast for the global economy, which is predicted to grow by 3.5% this year.
However, the IMF’s World Economic Outlook gave a brighter summary for 2014, estimating that output in Spain will increase by 0.8%, against a global increase of 4.1%.
Spain’s government announced it expects output to fall by 0.5% this year, although experts claim the figure will be higher.
Spain slipped deeper into recession in the final quarter of the year due in part to a slowdown in consumer spending following the introduction of value-added tax in September.
“Household consumption posted negative figures throughout the year, though more forcefully so in the final month, owing to the impact of fiscal consolidation measures,” said a spokesman for Spain’s central bank.
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