TheSpanish economy will grow 2.1% this year, according to the new forecasts ofInternational Monetary Fund(IMF), which has revised its forecast for the month of January to one tenth downwards, although the international institution has confirmed its expectation that Spanish GDP will grow by 1.9% in 2020, thus staying in both years above the anticipated average expansion for the euro zone.
In its analysis, the international institution advocates for Spain to carry out a "gradual reconstruction" of its fiscal cushion in order to guarantee stability and avoid rekindling the negative spiral between sovereign and banking risks, adding that efforts to reduce duality of the labor market would boost job creation and encourage private investment.
Despite this one tenth cut in its growth forecast for 2019, Spain is the largest European economy that best resists the generalized slowdown predicted by the IMF in its report 'World Economic Perspectives'.
Thus, the Spanish economy will continue to grow in 2019 and 2020 above the average of the eurozone, which has been lowered by three and two tenths, respectively, to 1.3% this year and 1.5% the next .
In fact, compared to the rest of the large economies of the euro, the one-tenth reduction in the growth forecast for Spain in 2019 is benign with respect to the adjustment made in the case of countries such as Germany, France or Italy.
Thus, the forecast of growth of the IMF for the German economy in 2019, which in January was already cut by six tenths, to 1.3%, is now adjusted to the low half of a percentage point, to 0.8% , while the forecast for 2020 is reduced by another two tenths and now stands at 1.4%.
In the case of France, the new forecasts point to a growth of 1.3% in 2019 and 1.4% a year later, two tenths less than projected in January for each year, while for Italy the institution has cut back in half a percentage point its growth forecast for 2019, up to 0.1%, although its projection for 2020 remains unchanged at 0.9%.