Spain: Uncertain outlook - Rabobank

The analysis team at Rabobank points out that since the outbreak of the crisis, the Spanish government has implemented many reforms, but outlook for further reforms is questionable.

Key Quotes

“Despite the strong and ongoing recovery still fewer people are at work today then prior to the crisis and the unemployment rate is set to remain high in international perspective.”

“To preserve healthy economic growth rates in the medium term, the government should speed up the labour market recovery and deal with remaining challenges.”

“Active labour market policies should be strengthened, wage bargaining decentralised and labour market dualities reduced. Yet the outlook for further reforms is questionable.”

“Elections in 2019 could break the reform deadlock, but not necessarily in a positive way.”