Previous IMF forecasts for Spain
Previous IMF forecasts for Spain

The director of the International Monetary Fund, Christine Lagarde, has warned that the growth rate for both 2014 and 2015 is lower than expected and is committed to investment (public and private) as a measure to boost economic activity.

Although the data will not be presented by the IMF for another two weeks, Lagarde outlined the trend observed in the short and medium term, pointing out that economic activity, slow in the first months of 2014, should strengthen in the second part and accelerate in 2015

In addition, he pointed out that the economic crisis has caused a drop in investment in three key sectors: companies, housing and the public sector and stressed that the two imperatives that must be taken into account to increase them and that lead to the desired effect of “stabilizing or reducing the ratio between public debt and gross domestic product (GDP)” are the sustainability of public debt and acceptable financing conditions.

On the same day that Lagarde presented this new information, it was concluded that this new scenario requires, in addition to budgetary policy, crisis management and economic policy, a reflection on the model of the euro zone for the coming years, something that has not been done so far.

This conclusion is welcomed with surprise, since on a daily basis we find news related to meetings of the economic representatives of the Eurogroup, meetings of the IMF itself… shouldn’t they already be thinking about the next 10 years, which is what they have been doing? discussing so far?