IMF Upgrades Spain Growth Forecast, Warns of Reform Slowdown
- Fund raises growth projection to 3.1% in 2017 vs 2.6% prior
- IMF warns of reform slowdown, high debt and banks adjustment
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The International Monetary Fund upgraded Spain’s growth forecast, citing an “impressive” recovery even as it warned of a slowdown in reforms and unsolved crisis legacy issues.
The Washington-based fund expects the euro area’s fourth-largest economy to expand 3.1 percent this year, adding there’s “upside risk” to that forecast as the “momentum created by past reforms may be bigger than estimated.” The revision from 2.6 percent in April is the IMF’s second upgrade in seven months and gives a fresh boost to the minority government of Mariano Rajoy.