IMF Survey : Spain: Maintaining the Strong Growth Momentum

International Monetary Fund

International Monetary Fund (Photo credit: Wikipedia)

Spain gets praise from the IMF, which is quite rare. Check it out!

via IMF Survey : Spain: Maintaining the Strong Growth Momentum.

Spain has taken her austerity medicine undiluted and there are deep scars with youth unemployment at over 50%. BUT Spain has rebounded.

It will be interesting to see how Spain’s voters rate the improvements.

Thoughts?

2 responses

  1. Well, I’m not convinced. The Spanish rebound arguably could be caused by the drop in energy prices: the whole of Southern Europe has just rebounded this quarter, and Italy is doing even better than Spain…But then, Italy didn’t take as strong a draft of austerity measures as Spain did…So, really, I think it’s a little too early to ascribe good results to austerity alone. It’s hard to isolate the effects of austerity when you have much more sweeping effects overwhelming an economy as the huge drop in oil prices that has been going for quite a while now and doesn’t look like it’s exhausted its downward run yet!

    • Yes, you make good points. But there’s still an urgent need to stimulate investment in Europe, especially Southern Europe. Also practical policies are required to deal with chronic youth unemployment – apart from reskilling, perhaps more national service, including in social services.

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