The last IMF´s World Economic Outlook is worth reading. The report expects a decrease in global output of 1.3% this year, even in a global economy in which main central banks all over the world have put into the system trillions of dollars to improve liquidity, leading richer countries to a deficit of 9% of GDP, six times higher than before the crisis.
From a European perspective, there are also hidden problems according to this IMF report. For example, this institution suggests that European banks will have to face $1.1 trillion of writedowns over the next two years and only $334 billion has been booked, which means that these European banks will need $600 billion in more equity.
In Spain this report has been extensively quoted in mass media mainly because of the negative outlook over the future of the Spanish economy -in line with the rest of the world- and for the specific recommendations on labor market, claiming for a new legal framework with higher flexibility.
It is well known the answer from the present Spanish government to these recommendations. Most probably, authors of this IMF report anticipated this reaction and, consequently, forecasted such a negative future for Spain in terms of unemployment and productivity….
It can be said louder, but not clearer. Spaniards have the last word.