Overview

• The IMF projects Spain’s GDP will grow by 2.5% in 2025, surpassing the eurozone average on the back of strong private consumption and investment.
• To tame climbing home prices, the fund recommends expanding housing supply in high-tension cities, streamlining building permits and overhauling land-use regulations.
• It warns that reducing the workweek to 37.5 hours requires preserving collective bargaining flexibility and annual hours distribution to avoid productivity and wage setbacks.
• The evaluation calls for pension reform by extending the contributory period for benefits calculation and offering incentives to keep older workers in the labor force.
• The institution urges accelerating fiscal consolidation to 2025-29 to curb debt nearing 93% of GDP by 2030 and notes that each 10-point rise in US tariffs could shave 0.1% off output.