March 1, 2021

The IMF warns that Spain's deficit will deviate by 12,000 million

The IMF warns that Spain's deficit will deviate by 12,000 million

Practically all the institutions indicate that Spain will not comply with the deficit target of 1.3% of GDP for 2019. This time, the International Monetary Fund (IMF) has been the one that has launched its forecast, puts the deficit at 2.3% by the end of this year, one point above the target, which would imply a deviation of 12,000 million euros, according to the agency in its "Fiscal Monitor". The Fund estimates that the data will also be maintained next year.

On the other hand, one day after predicting the global economic slowdown, the IMF warns advanced economies that they must "prepare for the next slowdown." The Fund recommends encourage migration and increase taxes on large estates and inheritances to achieve more equitable economic growth. After the economic crisis, there has been "less emphasis on reforms aimed at promoting long-term inclusive growth through adaptation to demographic changes, the advancement of technology and increasing global integration," the agency explained.

Specifically, "Migration can help alleviate fiscal pressures in aging economies." About Progressively increase taxes, said that it would help distribute the benefits of technology and trade in a more equitable manner and ensures that implementing higher taxes for those that charge more generates "redistributive profits that exceed efficiency costs."

To promote "more vigorous" economic growth, the entity chaired by Christine Lagarde says it is "critical" that countries prioritize cost savings «Cutting waste and curbing corruption». He further explains that "the elimination of fuel subsidies » it could increase revenue close to 4% of GDP, while more efficient management of public sector assets could increase fiscal income by 3% of GDP.


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