The IMF About Spain
Spain’s economy needs far-reaching and comprehensive reforms. The challenges are severe: a dysfunctional labor market, the deflating property bubble, a large fiscal deficit, heavy private sector and external indebtedness, anemic productivity growth, weak competitiveness, and a banking sector with pockets of weakness. Ambitious fiscal consolidation is underway, recently reinforced and front-loaded. This needs to be complemented with growth-enhancing structural reforms, building on the progress made on product markets and the housing sector, especially overhauling the labor market. A bold pension reform, along the lines proposed by the government, should be quickly adopted. Consolidation and reform of the banking system needs to be accelerated. Such a comprehensive strategy would be helped by broad political and social support, and time is of the essence.
Things are looking pretty grim…
… given the fact that this analysis comes after the country has already undertaken highly unpopular reforms…
… We’ll see…
Go Spain! Go!
Update: Some interesting( and less interesting yet somewhat funny) articles on Business Insider
- The Nightmare of Spain’s Brutal Austerity Budget
- Charts That Show the Spanish Economy is About to Get Gored
- Here’s Everyone Who Would Get Slammed in a Spanish Debt Crisis
- 530 Million Euros For The Spanish Banking Bailout
- Spain’s Choice: A Double-Dip Recession or a Financial Crisis