The IMF has increased Spain’s growth estimate to 3.1% for 2015. This is the second time the International Monetary Fund has made a favourable change to Spain’s growth in three months.
Mariano Rajoy has faced pressures domestically but has been successful in reigniting Spain’s economy.
“The recovery has gathered speed and job creation has accelerated, but the level of unemployment is still high” said the IMF in its report.
Spain’s government have pushed through a number of reforms that have successfully enabled Spain to produce growth levels that are adequate enough to put a dent it their high unemployment figures and boost consumer confidence.
“The reforms are making a difference. Labour market reforms and moderate wage growth have supported employment and helped Spain regain competitiveness lost during the pre-crisis boom” explains the IMF.
Rajoy will have to tackle negative domestic sentiment later this year if he wants to remain in power, the IMF report will do much to garner support from the financial community, the general public may need a little more persuading.