IMF forecasts even greater economic improvement for Spain in 2017

Confidence is coursing through the veins of Spain’s economy thanks to buoyancy in the tourism, export and property sectors in particular.

The Washington-based International Monetary Fund (IMF) has this week upgraded Spain’s economic outlook for 2017 on the back of its booming tourism sector, growing domestic consumer demand and extremely strong export market…

Spain’s economy is now poised to grow by 3.1% this year, says the IMF. Its previous forecast – made in April – put Spanish growth for 2017 at 2.6%.

This upgrade places the country as a leader within the EU in terms of rising GDP and economic fortunes, and the IMF also said that it “could not rule out” a further upgrade in Spain’s fortunes later this year, particularly if the ever-busy summer season delivers yet more record-breaking tourism numbers.

But it is not just Spain’s perpetual attraction among holidaymakers that has boosted its economy: the IMF praised the “momentum” created by the government’s economic and labour reforms, stressing that consumer demand and confidence is now soaring, potentially creating a virtuous circle of spending, job creation and economic expansion.

While wage suppression and youth unemployment are still issues the government should seek to tackle more fervently, the strength of Spain’s export sector this year is a testament to the high standards and competitiveness now apparent in Spanish industry, the IMF said.

Last year, Spanish GDP rose 3.2%, and in 2015 growth was more than 2.5%. Looking ahead to 2018, economists are confident that Spain can continue this course of growth, especially with the continuing support of the strengthening property and construction sectors.