Investing

Spain Gets Latest IMF Caution Flag

Economists and investors have enough to worry about in Europe. Greece is in a state of collapse. There are concerns that Portugal and Ireland could follow.

Add Spain to the list of nations that the IMF says deserve some concern. Its new “Spain—2011 Article IV Consultation Concluding Statement of the Mission” issued in Madrid says that the country is on the right track but that any departure from reform programs could push the nation’s financial fortunes off track.

Exports could help Spain’s recovery rate rise to 1.5% to 2% GDP improvement.But,

The policy agenda remains challenging and urgent – there can be no let up in the reform momentum. Unwinding accumulated imbalances and reallocating resources across sectors will take years and many difficult policy choices. And some of the underlying problems of the Spanish economy, especially weak productivity growth and the dysfunctional labor market, remain to be fully addressed

 

 

Unemployment has to be at the top of that list. It is currently above 21% and 2% GDP growth is not anywhere near sufficient to change the jobless rate. And, there is no such thing as a “jobless recovery” when one fifth of the working population have no jobs

Douglas A. McIntyre

 

 

 

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.