Spain: Staff Report for the 2012 Article IV Consultation

IMF Staff Country Reports, July 27, 2012

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Spain: Staff Report for the 2012 Article IV Consultation

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Bibliographic details

• Published: July 27, 2012
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781475505818.002

Overview

• The Spanish economy suffered an unprecedented double-dip recession with the rising unemployment and public debt situation.
• Spain suffered a reversal of private external financing flows in 2011 and 2012.
• Major policy actions were taken in the banking sector to counter the economic deterioration.
• The fiscal framework has been improved, and a scheme for clearing subnational arrears has been established.
• The Executive Board emphasized the need for sustained efforts and a medium-term strategy for structural reforms and financial sector restructuring.

Key findings

• Double-dip recession characterized the recent economic performance.
• Rising unemployment and increasing public debt were prominent macroeconomic concerns.
• Reversal of private external financing flows occurred in 2011 and 2012, contributing to financial stress.
• Banking sector intervention and policy measures were central to the authorities' response.
• Fiscal framework reforms and a subnational arrears clearance scheme were implemented.

Policy actions and recommendations

• Banking sector: major policy actions implemented to stabilize the financial system.
• Fiscal policy: improvement of the fiscal framework to strengthen fiscal consolidation.
• Subnational finances: establishment of a scheme for clearing subnational arrears.
• Structural and financial sector reform: Executive Board called for sustained efforts and a medium-term strategy for structural reforms and financial sector restructuring.

Subject coverage and keywords

• Subjects: Banking, Employment, Fiscal consolidation, Labor, Labor markets, Public debt, Wages
• Keywords: analysis of the well, article IV report, bank, CR, deficit, Employment, Europe, Global, government, ISCR, Labor markets, liability positions vis, Spanish authorities, staff, staff's appraisal, vis nonresident, Wages

Content in this bundle

• Spain: 2012 Article IV Consultation; IMF Country Report No. 12/202; July 20, 2012
  • Spain: 2012 Article IV Consultation; IMF Country Report No. 12/202; July 20, 2012 (Markdown version)
  • Spain: 2012 Article IV Consultation; IMF Country Report No. 12/202; July 20, 2012 (PDF)