Live
- A Guide to Temperature and Humidity Standards in Data Center Server Rooms
- Gadwal collector briefs on details of voters
- Jupally Krishna Rao takes part in Alampur rallu
- Bharath Prasad files 3rd Nomination
- Baisakh Month: A Time of Auspicious Beginnings and Sacred Festivals
- Oust BJD govt for overall development, says Shah
- Unveiling the Hidden Gems: Surprising Health Benefits of Garlic Peels
- Overcoming Sleep Struggles: A Comprehensive Guide to a Restful Night
- RTC bus hit the auto
- MLA Kuchukula Rajesh Reddy participated in the Birappa festival
Just In
x
Highlights
Spain must stay the course on economic reforms if it wants to generate growth and reduce its sky-high unemployment rate, ahead of a year-end general election, the International Monetary Fund said Friday.
Spain must stay the course on economic reforms if it wants to generate growth and reduce its sky-high unemployment rate, ahead of a year-end general election, the International Monetary Fund said Friday.
"The clearer we are in not reversing existing structural reforms and fiscal consolidation, the stronger is the defence against any external risks," said Helge Berger, chief of the IMF mission in Spain following the publication of the body's annual report on the country.
The Washington-based IMF warned that backtracking on reforms would "create uncertainty and damage the recovery, especially if external conditions deteriorate."
Spain is benefiting from a weaker euro which helps boost exports and lower oil prices and is less exposed to "external contagions" such as the Greek economic crisis, it added.
The country emerged in 2013 from five years of on-off recession and the government forecasts the economy will grow by 3.3 percent this year -- more than twice the average forecast for eurozone countries.
Prime Minister Mariano Rajoy's conservative government credits new rules adopted in 2012 for making it cheaper for firms to lay off workers and limiting the power of unions to negotiate collective-bargaining agreements across entire industries or regions for the recovery.
The IMF said Spain needed to adopt "additional reforms" to take advantage of the economic recovery and reduce the unemployment rate, which stood at 22.4 percent in the second quarter, the second-highest rate in the eurozone after that of bailed-out Greece.
It recommended further reforms of the labour market as well as measures to address the lack of competitiveness of Spanish firms.
The IMF maintained its forecast of economic growth of 3.1 percent in Spain this year, slightly below the 3.3 percent expansion predicted by the Spanish government.
It sees the Spanish economy, the eurozone's fourth largest, expanding by 2.5 percent in 2016 while the government predicts growth of 3.0 percent.
Rajoy's economic reforms have been criticised by opposition parties, especially new far-left party Podemos, a close ally of Greece's ruling Syriza, which made gains in May local elections.
Spain's ruling Popular Party lost power in several regions and cities, including Madrid, a long-time conservative bastion.
Next Story
More Stories
ADVERTISEMENT
© 2024 Hyderabad Media House Limited/The Hans India. All rights reserved. Powered by hocalwire.com