Washington (EFE).- The International Monetary Fund (IMF) estimated this Friday that if Spain’s growth expected for this year and next is observed, the country is “in a good position”, despite the downward adjustment that this body has made in the forecasts of 2024.
“In general, I must emphasize that, if 2023 and 2024 are seen together, Spain is in a good position,” said the director of the IMF’s European Department, Alfred Kammer, at a press conference.
In its latest macroeconomic projections published this week, within the framework of its spring meetings, the IMF forecast that the Spanish economy will grow 1.5% this year, four tenths more than previously projected, but reduced the expected growth by four tenths by 2024, up to 2%.
A drop that, Kammer pointed out, is explained by “the late response to monetary tightening” in the euro zone and also by the tightening of financial conditions due to “the sum of the banking episodes that we have had”.
The IMF and the Bank of Spain, similar growth projections
The growth figures for Spain estimated by the organization led by Kristalina Georgieva are in line with the projections of the Bank of Spain, which in its latest estimates places it at 1.6% this year. The Spanish government is much more optimistic and estimates growth of 2.3% this year.
Spain will be the economy that most pushes the sluggish growth of the euro area, as these figures are above the average for the euro area, which will grow 0.8% this year (1 tenth more than previously projected) and 1, 4% next year (two tenths less).
At the press conference, Kammer explained that the lower growth for Europe is due to “the effects of the Russian invasion of Ukraine” which caused a great impact on the European economies.
He recalled among these consequences the increase in energy prices and the increase in inflation, which have required a greater monetary adjustment, reduced the purchasing power of people and increased production costs.
In any case, he pointed out that there are differences between the countries of the region depending on their energy dependence.
He also explained that the biggest concern last year was that a Russian gas shutdown could stall the European economy, something that would have caused a “great recession” in Europe but “didn’t happen.”