General idea
As we already know, our economy has been one of the big losers in this global economic crisis.
Not only were we one of the worst countries in the first half of the year, but due to the presumed second wave coming our way, everything seems to indicate that the situation will get even worse.
Future scenario
The IMF estimates that it will take a few years for output to return to pre-pandemic levels. This situation, coupled with the possibility of an unclear Brexit and the trade tensions between the United States and China, means that our economy is faltering even further than expected.
Our current politicians are not helping our recovery either. Whether right-wing or left-wing, liberal or progressive, it is clear that there is currently no politician capable of resolving the situation in which we find ourselves, not resolving, but mitigating the impact of the COVID crisis.
In its study, the IMF encourages Spain to use the funds provided by the EU to make the labour reform more flexible and introduce a new redundancy fund for permanent contracts, as well as other recommendations such as expanding vocational training for citizens, digitalisation of companies and, of course, full support for sustainability.
Our current level of public debt, as published today by the BE, stands at 110%, and forecasts place it at over 120% in the coming years.
Conclusion:
Given this scenario, the IMF believes that once Spain is in surplus (as in the years prior to the origin of the pandemic), when there is a decrease in unemployment and we can say that our economy is recovering, we will be able to implement a gradual fiscal adjustment to bring down the public debt curve by means of a firm downward path.
