THE INTERNATIONAL Monetary Fund has today announced that Spain’s gross domestic product (GDP) will grow this year and next at a faster rate than that of the other main advanced economies.
According to its World Economic Outlook report, however, Spain’s GDP for 2024 has been downgraded by the institution, and will rise by 1.7% rather than the previous estimate of 2%.
In the document, however, the IMF stated that it is not altering its Spain forecast for this year, and that GDP will rise by 2.4%. This would mean that the country’s economy will outperform those of other developed nations.
The Washington-based organisation of 190 countries – which works to secure financial stability and facilitate international trade, among other functions – has also reduced its growth forecasts for India and Russia.
During a press conference to present the IMF’s latest report, chief economist Pierre-Olivier Gourinchas stated that a slump in industry and a lagging services sector were both going to have an influence on economies such as Spain’s during 2024.
The country’s strong performance in 2023, meanwhile, was attributed by Gourinchas to the ‘solid activity’ of the all-important tourism sector, which has bounced back this year in a major way thanks to the end of the Covid-19 restrictions.
The IMF is also predicting an average Consumer Price Index (CPI) in Spain of 3.5% this year, rising to 3.9% in 2024.