Spain: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, April 22, 2009
Source details
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- Spain: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: April 22, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451812282.002
Overview
- After 15 years of impressive growth led by a housing boom, the Spanish economy has entered a sharp downturn in the wake of the global liquidity squeeze since mid-2007.
- Executive Directors commended the authorities for timely and substantial fiscal and financial sector responses to help cushion the downturn.
- Directors emphasized that these efforts need to be complemented by reforms to bolster competitiveness and to avoid a prolonged period of slow growth and high unemployment.
Key findings and analysis
- Duration of prior expansion: 15 years of strong growth driven primarily by a housing boom.
- Trigger of downturn: global liquidity squeeze since mid-2007.
- Nature of current economic environment: sharp downturn with risks of prolonged slow growth and high unemployment if competitiveness reforms are not implemented.
- Policy response to date: timely and substantial fiscal and financial sector measures taken by the authorities, which were positively received by Executive Directors.
Policy recommendations
- Complement fiscal and financial sector responses with structural reforms to bolster competitiveness.
- Implement measures aimed at avoiding a prolonged period of slow growth and high unemployment (no specific measures detailed on the page).
Publication information and identifiers
- Publication title: Spain: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion
- Publication date: April 22, 2009
- Series: Country Report No. 2009/128
- Issue: 128
- Volume: 2009
- Pages: 59
- DOI: https://doi.org/10.5089/9781451812282.002
- Stock No: 1ESPEA2009001
- ISBN: 9781451812282
- ISSN: 1934-7685
Spain: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion