Spain making strong economic progress, says IMF

Spain's economy is showing encouraging signs of recovery, according to the IMF

There are lies, damned lies, and statistics. And there are also statistics from various, none-too-scrupulous sources. Of course, something called, let’s say, the One-Man-Band Bureau of Spain Do Good is going to report that everything is rosy in el Jardín of Spain. It’s called an agenda.

But one organisation that is resolutely agenda-free is the International Monetary Fund (IMF), who oversee world economic affairs with all the even-handed grace of an umpire at a cricket match…

So when the BBC (also flag-bearers for truth and honesty) reports that the IMF has remarked that Spain is making ‘strong progress’ towards fixing its economy, it’s time to sit up and take notice.

The IMF expects Spain’s economy to return to growth towards the end of this year, echoing earlier reports that predict Spain will shake off recession at the beginning of 2014.

”Strong reform progress is helping stabilise the economy, and external and fiscal imbalances are correcting rapidly,” said the IMF report. However, it did issue a warning about Spain’s unemployment, which currently stands at 27 per cent.

“Unemployment remains unacceptably high and the outlook remains difficult,” the report continued, while also calling for stronger banking reform in order to ward off any future banking crises.

Despite the progress made under Rajoy’s cuts and reforms – and despite the protests such policies have instigated – the IMF calls for further labour law reforms, which would make it easier for companies to alter working conditions and devise more flexible contracts, rather than firing, or not even hiring, employees.

There were also calls for the country to provide more vocational training courses for Spanish youth and long-term unemployed.

So while the IMF’s report was tinged with caution and warnings of future difficulties to come, the overall tone was one of optimism and encouragement… something that has been conspicuously lacking in Spain over the past few years.