Spanish Business News

By 2011 the International Monetary Fund (IMF) left unchanged its forecast it had brought forward in October with Spain’s economy expected to grow by 0.9 percent.

The Spanish economy will fall by 0.6% this year 2010, according to the IMF.

The IMF improved by one tenth Spain’s growth forecast for this year, but still keeps the country in recession, a decrease of 0.6 percent, while the other major economies are starting top overcome the recession. So, Spain will be alone among the major developed countries this year.

By 2011 the International Monetary Fund (IMF) left unchanged its forecast it had brought forward in October with Spain’s economy expected to grow by 0.9 percent. These estimates contrast with those estimated for the euro area, which in 2010 will grow by 1 percent and 1.6 percent in 2011.

Germany and France, the area's largest economies and trading partners very important to Spain, comfortably exceed the European average for this year, with growth of 1.5 and 1.4 percent respectively. The Fund report forecasts upwards trends in all major world economies, except Spain.

Spain, moreover, is the only country with a negative sign in 2010, while the other major countries will this year will be positive, according to the agency. The United States, which caused the crisis, will grow 2.7 percent this year, which implies a major revision of the figures in the International Monetary Fund (IMF), which in October had predicted a gain of just 1.5 per percent. In 2011 the expansion will slow to 2.4 percent, according to its calculations.

To the world, the IMF predicts a recovery in two speeds, as the rebound in rich countries is weaker than after previous recessions, while in many of the emerging countries "activity will be relatively strong, especially thanks to buoyant internal demand" the report said.

Despite revisions, the IMF still believes that recovery is fragile and advises governments to maintain measures to stimulate economic activity. "The fiscal stimulus planned for 2010 should be fully in place," the report said. According to the agency, there is little evidence that private demand is improving at the margin of these incentive programs, so that premature withdrawal could stifle recovery. In developed countries, GDP before the crisis can only be recovered in late 2011, according to the Fund.

In them, the revival of its economy is complicated by high levels of unemployment and public debt, problems that persist in the financial system and the blow suffered by the economy of families, according to the IMF.

Source: Barcelona Reporter