The rain in Spain stays mainly in the plain (My Fair Lady).
According to BBVA Research, “Spain Economic Outlook“:
· In 2010 the Spanish economy embarked on an ambitious project of fiscal consolidation.
· The government introduced new discretionary measures and adopted a schedule of necessary structural reforms to correct some of the macroeconomic imbalances that had built up prior to and during the crisis. However, the Spanish government must maintain the sense of urgency with which it has tackled the reform process over recent months.
· Spanish exports have remained positive since the third quarter of 2009, and even improved in 2010 to help spur on economic recovery.
· The economy will grow by roughly 0.9% in 2011, enough to generate employment for the first time since the start of the crisis, but not enough to have any significant bearing on unemployment figures. This is likely to change in 2012, when the economy reaches 2% growth.
· The agreement reached between the Spanish government and interest groups will help to improve the outlook and sustainability of the pensions system. Although there are marked similarities between the reform processes for the Spanish and German public pension systems, the Spanish system remains more generous.
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