The IMF reduces the growth forecast for Spain this year and does not foresee that unemployment fall to at least 2022

Post-Covid recovery is being slower and more complicated than expected. That is the opinion of the International Monetary Fund (IMF), who has just published i

The IMF reduces the growth forecast for Spain this year and does not foresee that unemployment fall to at least 2022

Post-Covid recovery is being slower and more complicated than expected. That is the opinion of the International Monetary Fund (IMF), who has just published its economic forecasts with which it opens its annual assembly in which it reflects its concern about the unbalanced fight against COVID-19 worldwide, which is causing disruptions In the chain of supplies that, in turn, trigger inflation tensions.

The institution has cooled its optimism from the first half of the year, by slightly reducing its growth forecasts in the developed world - which lowers a tenth the world expansion - and by admitting that pressures in prices will continue up, at least , Summer 2022.

It is a considerably more complicated scenario than July, when the fund had issued its latest forecasts, because more inflation and less growth is a difficult problem for governments. Especially for the United States, where the institution has cut growth expectations at one point and admits that inflation is much more persistent than expected. This is added the need, underlined by the IMF, that countries begin to develop fiscal adjustment plans in the medium term, something that very few governments want to hear.

But it is not just a US problem. It is also from Spain. The IMF reduces its growth prospects in half point for this year, with what it is at 5.7%, although it rises them into six tenths, up to 6.4%, with which Spain becomes The country of the EU that will grow most in 2022. Even so, the impact of expansion seems to be moderated on the street. The unemployment rate does not fall more than a tenth this year, up to 15.4%. In 2022, despite the impressive expected growth, unemployment barely improves six tenths, up to 14.8%.

Updated Date: 15 October 2021, 05:00

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