Dramatic split-image depicting Middle East oil conflict impacting Spain's economy with declining IMF growth forecasts and housing policy recommendations.
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IMF cuts Spain's growth forecast to 2.1% due to Iran war

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The International Monetary Fund has cut its growth forecast for Spain's economy by two tenths, to 2.1% in 2026 and 1.8% in 2027, due to the Middle East conflict. The organization attributes the adjustment mainly to rising oil and gas prices. It recommends eliminating rent controls and taking stronger action on housing.

The International Monetary Fund (IMF) issued its statement from the Article IV consultation on Chile on May 4, 2026, praising President José Antonio Kast's National Reconstruction Plan for boosting medium-term growth while warning of fiscal costs requiring further consolidation. The IMF lowered its 2026 GDP growth forecast to 2.2%.

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The Ethiopian government has set an October 2026 deadline to finalize debt restructuring agreements with bilateral and commercial creditors. This step follows prior deals with the IMF and official creditors under the G20 Common Framework.

Kenya's government has announced plans to return to the International Monetary Fund (IMF) for fresh financing to address the budget deficit, while pursuing privatisation of state-owned enterprises. An IMF team arrived in Nairobi to start negotiations on a new three-year arrangement. This follows the collapse of the previous Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes in March 2025.

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Hassan Abdalla, governor of Egypt's Central Bank, joined the second AlUla Conference for Emerging Market Economies, stressing that the bank's role is not to push the currency up or down but to build a resilient policy framework. He outlined Egypt's economic reform program launched in March 2024, noting inflation's drop from around 40% to nearly 12%. He also highlighted improvements in key economic indicators amid global challenges.

Argentina's Central Bank announced on Monday, December 15, 2025, the first measures of its 2026 economic plan, including updating exchange rate bands according to inflation and a consistent program to accumulate international reserves. The International Monetary Fund (IMF) welcomed these decisions, aligned with its prior recommendations. Meanwhile, the National Treasury purchased 320 million dollars following the announcements.

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India recorded an 8.2% GDP growth in the second quarter, driven by strong manufacturing and services sectors. However, the International Monetary Fund has assigned a 'Grade C' to the country's national income accounting practices, highlighting structural weaknesses. This assessment underscores questions about the long-term sustainability of the growth amid uneven sectoral performance.

 

 

 

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