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.