The IMF estimates that Spain will reduce the deficit to 3% next year and will comply with fiscal rules

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The International Monetary Fund (IMF) has significantly reduced Spain’s debt and deficit estimates. The review that the National Institute of Statistics (INE) made of the growth of past quarters has a fundamental weight in this downward revision, and according to which the Spanish economy will contain its budgetary deviation to 3% next year.

Specific, the deficit will be 3.9% this year and 3% the one who comes Until now, the agency’s figures were 4.5% and 3.5%, respectively. That is, there is a reduction of six tenths this year, and five tenths for the following year.

This means that the IMF endorses the promise that the Government made to Brussels, by which it would reduce its deficit to 3% next year. And not only that, but it would meet the limit of those same three points of GDP that are established in the fiscal rules that will be active again starting in January, so that Spain would not be forced to be under the tutelage of the EU to reduce its deficit. Of course, the IMF also estimates that in 2025 the deviation will rebound to 3.4%, and will remain there in the medium term, according to the Fund’s estimates.

The debt estimate is also lowered since, with the same level of debt and a higher Gross Domestic Product (GDP) as a result of these revisions, the relative data is logically reduced. So, Public liabilities will be 107% this year and 104.7% next year. The figures so far pointed to 110% and 108%.

The IMF’s forecasts are based on the elimination of anti-inflation measures that expire at the end of the year, not their extension. Furthermore, in statements to EFE, IMF sources point out that extraordinary taxes on energy companies, banks and large fortunes will contribute between 3,500 and 3,600 million euros, which represents “an important contribution” to the efforts to confront the consequences of the pandemic and the energy crisis.

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