The IMF puts Spanish GDP growth above the main European countries

The last report of the IMF (International monetary fund), “Global Financial Stability report” raises the forecast published by July’s report and confirms the GDP growth in Spain for at least 2016 and 2017.

The fund reflects a GDP growth in Spain in 2016 of 3,1%. This data reinforces Spain as one of the most powerful development countries and increases the 2,7% growth that the government presented in April.

On the other hand, global economy is growing weakly. The forecast for this year is 3,1%, one tenth less than last year. Some developing countries will have a growth or 7%; however, others will only achieve a 2% growth.

GDP Grafic

The Fund puts the Euro Zone in a GDP growth of 1,6% so Spain doubles Europe’s average. Countries that one day were on top of this list like Germany, UK, France or Holland are now descending to the 125th position in the ranking. Those countries according to the IMF will grow under 2% which reflects the weakness of the economy in Europe.

The International Monetary Fund cuts the forecast for the British growth to 1,1% for next year and blames the Brexit which according to them will create economic barriers in Europe.

“The UK will have a lower growth after the referendum because of the uncertainty of investors, companies and customers.” says the IMF.

We must take into account that besides being an attraction because of the weather and being one of the top touristic destination in the world, the British are also attracted to the investment in our country since they represent a 21,3% of property acquisition in Spain.

The fund says that the Banks should adapt to the new low growth environment with the low types of interest that threats the profitability of the traditional business model.

Also Petter Dattels, director of the Department of Monetary Matters of the IMF says that one third of the European Banks “should be more efficient, there are too many offices with low deposits and too many banks with financial costs above their competitors.”

 

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