JPMorgan states on its last report: “Spain is back”. The American company increases the 2014 GDP forecast for Spain, encouraging the optimism about recovery.
“Spain is back”.The suggestive title of JPMorgan’s latest report on the Spanish economy gives way to the most optimistic analysis published during the last months by the financial institution, the biggest in the United States.
JPMorgan states on its last report: “Spain is back”. The American company increases the 2014 GDP forecast for Spain, encouraging the optimism about recovery.
“The recent flow of data is encouraging” says the bank, because “despite the prolonged weakness of bank loans” the economy has made “a significant progress since mid 2013”. An evolution that with the corresponding “caution” leads the bank to conclude that Spain “has been sufficiently restructured to grow at a decent pace in 2014”.
Therefore, according to its new data, the GDP will grow at 1% this year, in contrast to the 0.7% initially estimated and that Rajoy’s government expected or to the 0.2% forecasted by the International Monetary Fund (IMF).
JPMorgan’s forecast would mean to definitively leave behind the awful 2012 and 2013, with activity downfalls of 1.6% and 1.3% respectively. The calculation of the American analysts is based on the positive trust surveys, which show a “substantial improvement” of the economic sense “that is even more impressive” taking into account the “still pessimistic level” of opinions about the construction area. “This means that the betterment of trust in industry, services, retail trade and households has been higher than average” says the institution.
Source: Expansión
