Spain: Staff Report for the 2011 Article IV Consultation; Public Information Notice; Statement by the Staff Representative; and Statement by the Executive Director for Spain.
IMF Staff Country Reports, July 29, 2011
Source details
- Canonical URL
- Spain: Staff Report for the 2011 Article IV Consultation; Public Information Notice; Statement by the Staff Representative; and Statement by the Executive Director for Spain.
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Bibliographic details
- Published: July 29, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781462340552.002
Executive summary and key findings
- Spain experienced "a decade of strong expansion" led by a credit-fueled housing boom that was "hit by three major shocks."
- The policy response to Spain’s economic challenges has been described as "strong and wide-ranging," and has helped "to strengthen market confidence."
- Remaining vulnerabilities and policy needs highlighted:
- Need for "decisive implementation of the envisaged financial sector reform strategy" to "allay lingering market concerns."
- Need for "a bold strengthening of labor market reforms" to "substantially reduce unacceptably high unemployment."
- Need for "further progress ... on enhancing competition in nontradable sectors."
Themes and areas of focus
- Banking:
- Financial sector reform strategy must be decisively implemented to address market concerns.
- Employment and Labor markets:
- Labor market reforms need to be boldly strengthened to address "unacceptably high unemployment."
- Housing prices and credit:
- Past expansion was driven by a credit-fueled housing boom, a central factor in the crisis dynamics.
- Public debt and macro-financial linkages:
- Policy response has been broad-based and has improved market confidence; challenges around fiscal and financial stability remain implicit in the recommended reforms.
- Competition:
- Enhancing competition in nontradable sectors is identified as a key area for further progress.
Publication and document specifics
- Publication date: July 29, 2011
- Series: Country Report No. 2011/215
- Issue: 215
- Volume: 2011
- Pages: 69
- DOI: https://doi.org/10.5089/9781462340552.002
- ISBN: 9781462340552
- ISSN: 1934-7685
- Stock No: 1ESPEA2011001
- Subjects: Banking, Employment, Housing prices, Labor, Labor markets, Public debt, Unemployment
- Keywords: capital, CR, Employment, Europe, financial market spillover, FROB capital backstop, Global, ISCR, Labor markets, market discipline, private sector savings-investment balance, Spain, Unemployment, vis nonresident
Source: Spain: Staff Report for the 2011 Article IV Consultation; Public Information Notice; Statement by the Staff Representative; and Statement by the Executive Director for Spain. July 29, 2011.