Wed. Apr 24th, 2019

The IMF improves Spain's deficit forecast in 2019 to 2.6%

The IMF improves Spain's deficit forecast in 2019 to 2.6%


The institution chaired by Christine Lagarde has also revised down the deficit for the next two years, although to a lesser extent. Thus, the IMF now expects Spain to close 2020 with an imbalance of 2.79%, compared to 2.85% expected in October, while by 2021 the deficit will be 2.86%, compared to 2.93% previous .

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On February 13, the Plenary of Congress decided to return to the Government the draft General State Budget of 2019 to prosper the amendments to the total submitted by the PP, Citizens, Canary Coalition (CC), Asturias Forum and the independentist parties Esquerra Republican (ERC) and PDeCAT.

That project included the new path of the deficit prepared by the Executive of Pedro Sanchez, which contemplated an objective of the deficit of 1.8% in 2019 for all public administrations and 0.3% for the autonomous communities. Since the draft Budget has not been approved, the current path is still that approved by the Government of Mariano Rajoy, which estimated a total deficit of 1.3% and 0.1% for the autonomous communities.

Therefore, Spain would fail to meet its deficit target both in the path proposed by Pedro Sánchez and in the one approved by Mariano Rajoy, according to calculations made by the IMF.

Spain closed 2018 with a deficit for all public administrations of 31,805 million euros, which is equivalent to 2.63% of GDP, five tenths less than the imbalance registered the previous year (3.1%).

With regard to the increase in GDP, the new forecasts of the international body suggest that Spain will grow 2.1% this year, one tenth less than previously forecast, while maintaining the expectation for 2020 at 1.9%.

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 .

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