Lagarde: “Spain can grow in 2014 if no further adjustments are forced.”

Por el 19 de April del 2013

As reported by Gemma Martínez, Special Envoy in Washington, IMF managing director, in an extensive interview that you can read in the newspaper Expansion and in Orbyt, said “Spain can grow in 2014 if no further adjustments are forced.”

 

The head of this international organization, in the first interview she has given to a Spanish media since coming to office in 2011, warns that although she does not believe in deficit targets, maintains that Spain still has challenges to address.

Among other issues warns that “the Spanish government really have to question whether enough has been done with these reforms,” ​​and, in the case of Bankia, would have been “better clean up seven saving banks than a mega bank”. It also leads to self-criticism: “The IMF did not forecast or anticipate the brutality of the financial crisis.”

As for growth, believes that Spain could return to this path in 2014, “unless the country is forced to adopt tough fiscal consolidation measures. Anyway, certainly she does predict that there will be growth in 2015,” said Lagarde. She believes that “there is no objective reason to rush to make a drastic reduction of the deficit.” The IMF forecasts that the Spanish economy will shrink by 1.6% this year and  will rebound by 0.7% in 2014.

Perhaps is now the moment to increase the number of mergers and acquisitions in Spain?

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