IMF cuts forecast for Spanish growth

10th November 2004, Comments 0 comments

10 November 2004, MADRID- The International Monetary Fund said it had lowered its real economic growth forecast for Spain in 2005 to 2.6 percent from a previous 2.9 percent.

10 November 2004

MADRID- The International Monetary Fund said it had lowered its real economic growth forecast for Spain in 2005 to 2.6 percent from a previous 2.9 percent.

In the IMF's latest report on the Spanish economy, it said its figures deviated from government forecasts for 3.0 percent growth in gross domestic product because its oil price estimates for the year are 11 dollars per barrel higher than the Spanish budget forecasts.

The IMF maintained its 2004 GDP estimate at 2.6 percent.

In September, the IMF reduced its 2004 estimates to 2.6 percent from a previous 2.7 percent, and for 2005 it lowered GDP forecasts to 2.9 percent from 3.3 percent.

The fund noted, however, that Spain's economic progress had been "clearly
positive" in 2004.

However, it did express concern about the rising inflation in the eurozone and the housing boom in Spain.

The IMF said the Socialist government's 'shock plan' to build 180,000 affordable homes each year did nothing to address these problems.

[Copyright EFE with Expatica]

Subject: Spanish news

0 Comments To This Article