Spain's deflation risk is 'among the highest on Earth', says FMI
Friday, April 11, 2014 @ 6:17 PM
SPAIN is one of the world's highest-risk countries for deflation – and this phenomenon in the Eurozone as a whole is one of the main threats to the globe's economic health, claims the International Monetary Fund (FMI).
Head of World Economic Studies Thomas Helbling says Spain needs an 'in-house devaluation', so that prices in general fall 'in comparison with its fellow member States'.
“Let's not forget that Spain suffered what was probably the worst property market fall in Europe, and it takes a long while to recover from this,” Helbling announced this week.
Despite the European Commission having recently criticised president Mariano Rajoy's fiscal reforms for 'doing nothing to create jobs' and 'seriously aggravating poverty', Helbling stated: “The most important thing is for Spain to have the strength to carry on with its fiscal reforms.”
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