Spain only EU country with improved economic forecast for 2015

LAST UPDATED: 15 Oct, 2014 @ 16:13
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Spain only EU country with improved economic forecast for 2015

SPAIN is the only European country with improved economic prospects for 2015, according to the International Monetary Fund.

The Washington-based IMF has announced that Spain’s economy will grow by 1.3% in 2014 and by 1.7% in 2015, up from July’s forecasts of 1.2% growth this year and 1.6% growth next year.

This is the fastest predicted growth of any advanced European economy, despite a public debt of nearly 100% of GDP, a 25% unemployment rate and no alternative to construction as an engine of growth.

“Growth in Spain has resumed, supported by external demand as well as higher domestic demand reflecting improved financial conditions and rising confidence,” according to the IMF report.

Spain has been recording gradual gains over the last 12 months, driven first by exports and later by increased consumption, in turn encouraged by job creation.

Elsewhere at the IMF Annual Assembly, things were not looking so positive.

Worldwide, expectations for global growth have fallen to 3.3% for 2014 and 3.8% for 2015, down from 3.4% and 4.0% respectively.

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11 COMMENTS

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  1. Sadly most of the forecasts by the IMF are proved to be wrong . It generally brings out a modified forecast within 6 months which proves to be slightly more reliable .

  2. Who wrote this article? It’s absolute rubbish.

    Ireland: 3.0 Percent growth 2015
    Latvia: 3.2 ” ”
    Lux: 1.9 ” ”
    Malta: 2.2 ” ”
    Slovakia:2.6 ” ”
    Germany: 2.1 ” ”
    Sweden: 3.0 ” ”
    Lithuania: 3.0 ” ”
    UK 2.1 ” ”

    Figures published by a little organisation called the IMF.

    “http://www.economist.com/blogs/graphicdetail/2014/08/european-economy-guide”
    Figures published by the IMF.

  3. So far the IMF have underestimated Spanish growth figures for 2014. Good to see Spain bouncing back! But there is a cloud on the horizon – will northern Europeans keep taking theor holidays in the Med once Ebola cases occur there (already been a case in Germany)? Also, will people still keep visiting places like Barcelona that are packed to the brims not just with tourists but with pickpockets and the like? Further good news on the car production front “Spanish auto production is slated to increase by 25 percent, to 3 million units, by the end of 2017.” “http://ibexsalad2.blogspot.co.uk/2014/10/exports-again-and-again.html”

  4. Ah yes, the IMF, whose Spanish ex-head Mr Rato is about to get a 10 year prison sentence for corruption. Perhaps he cooked the books? Who knows what he did whilst in power?

  5. Does anyone really believe this garbage? Spain’s economy remains in ruins thanks to a witches brew of incompetence, corruption and low productivity. The powers that be (PP, PSOE) have created a country with 26 percent unemployment, mass emigration and extremely low salaries. Measured next to these Depression level standards almost anything would be considered “improvement.”

  6. This is a complete sham. Not only are the IMF figures dubious – the shell game being played here is criminal. Since Spain’s economy collapsed literally thousands of decent paying jobs have been lost. The new jobs are almost all in the low wage service sector. Most are temporary and seasonal so if there is a downturn in tourism there will be a corollary effect on job creation. Rajoy and the PP are going to crow about its leadership creating a Spanish miracle but nothing could be further from the truth. Unemployment will still remain over 25 percent. Hardly a miracle when one considers that over 2 million people have left the country during the past five years. The PP has intentionally created an economy with the worst divide between rich and poor in the entire EU. It’s a buyer’s market with ultra cheap labor in which workers are considered fortunate if they’re even “mileuristas.” The truth is Spain is not recovering and is in fact continuing to get worse. The underlying problems that have led to its depression haven’t been properly addressed nor will be with ridiculous puff pieces such as this one.

  7. There is no doubt that growth has resumed in the Spanish economy. Various reports whether from the IMF, BBVA, or government bodies bear that out. Even internal tourism numbers are up, and you couldn’t fail to see full shopping streets and nightlife in various Spanish cities this summer. But it is also true, as in the rest of the western world, that it’s mainly the rich who are benefitting. As this article shows, there was a strong rise of 24% in millionaires in Spain in the last year. “http://m.thelocal.es/20141014/spains-millionaire-list-surges-24-per-cent”

  8. This figures just say that Spain goes from -10 to -6 a big improvement.
    If Spain is so great why does the nordic countries have to pay so much money in tax per capita to keep them going.

  9. Interesting article pointing out recovery in both Ireland and Spain driven by a change in confidence. “http://www.davidmcwilliams.ie/2014/10/20/the-indomitable-spirit-is-taking-over” It also states there is a shortage of housing in both Madrid and Barcelona. No doubt the doomsters proven wrong on so many things, will dispute the facts, but if traffic is really backing up on the Castellana, some folk are doing ok. The issue is, how can the wealth trickle down to the have nots? Revolution?

  10. What tosh saying ‘no doubt the doomsters proven wrong on so many things’ it’s the level headed non rosy specs who’ve been proven right on so many things for the last 5 years or more. Thanks to them, many unwary people may not have been ripped off.

    No shortage of housing all over the southern Costas, inland towns, and up the sides of rural mountains.

    Ireland is nothing like Spain in size nor in economy, nor in huge glut of property still for sale! Lol

  11. The IMF relies on figures reported by the Spanish government, so any thinking person would take them with a truck-full of salt.

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