IMF lowers 2011 Spain growth

30th July 2010, Comments 0 comments

The IMF on Friday lowered its 2011 growth forecast for the Spanish economy to 0.6 percent from 0.9 percent it previously forecast in April and warned the recovery "is likely to be weak and fragile."

"The particular challenges facing Spain will likely make the recovery slower and more fragile than in the euro area," it said in its latest report on the the country's economy.

"Growth remains slightly negative in 2010 and weakly positive thereafter, rising gradually to a range of 1.5 to 2.0 percent over the medium term."

The International Monetary Fund predicts the Spanish economy, Europe's fifth-largest, will contract by 0.4 percent this year. It foresees growth of 1.7 percent in 2012 and of 1.9 percent in both 2013 and 2014.

The government predicts the economy will shrink by 0.3 percent this year and expand by 1.3 percent in 2011.

© 2010 AFP

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