Spain has done more than either Italy or France to reform its economy and reduce public spending, according to the Organisation for Economic Co-operation and Development’s latest review of the Spanish economy.
The key findings of the report:
-
Structural reforms (labour market, banking, fiscal) have put the economy on the road to recovery.
-
Reforms have improved labour market performance even though unemployment rate is still too high.
-
Innovation, especially by business is too low, and talent is under-utilised.
-
In spite of recent competitiveness gains, barriers to entrepreneurship remain high.
-
The banking sector has improved but credit is too low and firms need access to other sources of financing.
-
The budget situation has improved, but public debt is still high and rising.
-
Private debt is falling. Firms face difficulties to obtain financing.
The OECD predicts that the Spanish economy will grow by 1.2% in 2014 and 1.6% in 2015. That is slightly less than predictions made by Luis de Guindos, Spain’s minister for the economy and competitiveness, who in July said that he expected the economy to grow by 2% in 2015. In May, the European Commission predicted that Spain’s economy would grow by 2.1% in 2015
OECD slideshare presentation
European Voice commentary
© OECD
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article