The International Monetary Fund revised its economic forecast for Spain yesterday, raising their expectations slightly. The IMF, led by Christine Lagarde, expects that Spain's GDP will fall just 1.3% instead of 1.6%. It has forecasted a ridiculous 0.2% GDP growth for 2014, which is two tenths of a point more than the last time it issued this prediction.
The IMF and the Spanish government do not agree about future GDP. The government wants to see a 0.7% growth increase next year along with organizations like Funcas, which predicts a 1% increase. Markets are showing increased confidence in the economy despite low IMF expectations.
The story in Spain will stay interesting, and investors will take their positions as the recovery begins to start. Hopefully it will be stronger than what both the IMF and Rajoy's government expect.