IMF calls for reform of Spanish economy
The International Monetary Fund has warned that Spain is in an “unprecedented” double-dip recession and urged its leaders to implement further reforms.
In its annual review of the country, the IMF commended Spain on the policy actions of recent months – including identifying individual bank capital needs, recapitalising or restructuring weak lenders and strengthening supervision and regulation.
However, the Washington-based group pointed out that the country’s double-dip recession has been accompanied by “very high unemployment” while public debt is rising rapidly. Earlier today, official figures showed the unemployment rate increased to 24.6 per cent during the second quarter.
The review adds that Spain’s economic outlook “remains very difficult and vulnerable to significant downside risks”. It also stresses the “critical importance of sustained efforts and a clear, credible medium-term strategy for fiscal consolidation, financial sector restructuring, and structural reforms”.
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