The economies of Spain and Italy will contract 12.8% in
2020, the biggest drop in advanced countries, in the midst of the coronavirus
pandemic, while the Spanish deficit will shoot up to 13.8% this year and the
debt will touch the 124%, according to new forecasts released this Wednesday by
the International Monetary Fund (IMF).
The Fund's new calculations represent a drastic worsening
than anticipated in April, when it calculated a drop in Spanish GDP of 8% and
Italian GDP of 9.1%, respectively; and 7.5% for the euro area.
"(In advanced economies) there appears to have been a
deeper blow to activity in the first half of the year, with signs of voluntary
distancing even before reclusion orders were imposed. This also suggests a more
gradual recovery in second half since the fear of contagion is likely to
continue, "said the Fund.
France, according to the new forecasts, will also register a
notable collapse of 12.5% this year, more than five percentage points worse
than forecast in April, and Germany, the leading economy of the euro, will fall
7.8%, eight tenths worse than expected.
Looking ahead to next year, the recovery in the euro area
now stands at 6.3%, with Spain and Italy at the same growth figure for next
year, Germany 5.4% and France 7.3% .
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