The International Monetary Fund (IMF) threw a glass of cold water at Spain yesterday when it said in its spring report that Spain will not meet its deficit goal for 2012 or 2013. The IMF approves the measures Spain has enacted, but it also objects on grounds that cuts should have been employed in a way that led to growth for Spain?s weak economy.
In the words of IMF economists, Spain should approach its reform measures as though running a marathon, not a sprint. Lagarde stated that investors are concerned about growth in the country.
A small, short recession is expected for the globe's major economies, but it will last longer in Greece, Italy, Portugal and Spain. The IMF report could inspire the ECB and Germany to reduce their pressure on these countries and attempt alternative methods for sparking economic activity.
