Spain’s economy shows signs of growth but still has ‘a long way to go’

Spain's economy is growing slowly after the 2008 financial crisis

LAST UPDATED: 21 Apr, 2017 @ 17:10

imfSPAIN still has a long way to go until a full economic recovery.

The International Monetary Fund (IMF) estimates the country’s 2017 GDP growth at 2.6%, way short of the 3.2% growth registered last year.

Growth of just 2.1% has been forecasted for 2018.

However, the IMF predicts unemployment will decrease to 17.7% this year down from its current rate of 18.6%.

The IMF’s managing director, Christine Lagarde, praised Spain’s economic progress but called for changes to the current system of temporary contracts with low firing costs and permanent contracts with high firing costs.

She said: “The figures have not improved miraculously: thanks to reforms, the economy is turning the corner away from the crisis; unemployment, while still very high, has fallen. And we expect it to continue falling.”

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