MADRID – Spain’s booming economy is under threat because of mounting debt hitting consumers and companies, the International Monetary Fund has warned.

In a statement, the IMF said: “The Spanish economy has performed well and its short-term prospects remain bright, but there are gathering clouds stemming from accumulated imbalances.”

It predicted Spain’s current account deficit would reach 9.5 percent of GDP this year.

It also said debt levels “were among the highest” in the main advanced economies.

“The accumulation of net external liabilities cannot continue indefinitely,” the IMF report said.

It said economic growth would slow to 3.5 pc this year, from 3.9 pc last year.

High debt and a current account deficit would be the main problems affecting the economic slowdown.

[Copyright EFE with Expatica]

Subject: Spanish news