For Spain, the financial institution projects a deficit of 5.3% of GDP in 2022; 4.3% in 2023 and 3.9% in 2024, in addition to closing this year with a debt/GDP ratio of 116.4%.
In the rest of the world, the IMF projects that the United States will close 2022 with a public deficit of 4.8%; the euro zone, 4.3%; the United Kingdom, 4.3%; China, 7.7%; Japan, 7.8%, and India, 9.9%.
The International Monetary Fund (FMI) warned this Wednesday of a possible fragmentation of the world economy by which countries restrict their trade relations with their partners or allies, as a result of the Russian invasion of Ukraine.
At a press conference on the sidelines of the spring assembly, managing director Kristalina Georgieva, praised the benefits of globalization in recent decades.
In addition, the official lamented the signs of change of course that are taking place in the global economy.
Georgieva highlighted that the gross domestic product Global (GDP) has tripled since 1990 and that the benefits have taken them away.
This especially in developing countries, which now they have an economy 4.5 times larger to that of then.
In addition, as explained by the managing director of the institution, poverty has been reduced considerably.
“The irony is that a more fragmented world requires more cooperation to prevent gigantic risks from materializing,” assured.
The commercial withdrawal of the countries goes beyond the sanctions implemented by the West against Russia for its invasion of Ukraine.
This is part of a pattern of progressive commercial divergence between the bloc of democracies, made up of, among others, USA, Europe and Japan. Added to this are the authoritarian regimes, in which there are Russia and China.
Complications in the global economy
Georgieva assured that the IMF makes it a priority to provide objective analyzes of the benefits of cooperation and the risks of fragmentation.
“This is a difficult time and very disturbing events are taking place, but we are interdependent and the need for cooperation is very strong,” assured the economist.
However, he assured that he could attest that although cooperation is more difficult when there are tensions, this “It is not impossible” and important decisions can still be made.
The IMF on Tuesday released an update to its economic growth projections for 2022 and beyond.
For the first time they reflect the impact of the war in Ukraine and according to which the vast majority of countries will experience a lower growth rate.
This Wednesday was the turn of the report of “tax surveillance” of the entity, in which it projects the evolution of the public deficit or surplus for each country and of the ratio between public debt and GDP.
For Latin American countries, The IMF forecasts that 2022 will close with an average deficit of 4.7% of GDP, which will be reduced to 4.2% in 2023 and 3.4% in 2024.
Within the region, the Fund anticipates large variations for 2022, ranging from 7.6% forecast for Brazil to 1.5% for Chile.
“Projections for most Latin American countries point to much lower deficits than in 2020, for the end of the exceptional fiscal measures decreed by the pandemic,” he said. Paolo Mauro, deputy director of the IMF’s Financial Affairs Department.