Spain economy expected to grow much more than predicted by IMF this year

The world banking institution had forecast growth of 2.6%, but on Tuesday it revised this to ‘at least’ 3.1%.

Strong consumption, investment and exports have helped to keep Spain’s four-year economic recovery on track.

The country’s gross domestic product also likely surpassed its pre-crisis level in the second quarter of this year, according to the IMF.

But the body added that Spain’s economy could end up growing more than 3.1% in 2017, if momentum from past reforms accelerates more than expected.

Spain restructured its banking sector and made tweaks to its labor laws several years ago to try to boost growth after the country plunged into recession when a building boom went bust.

The IMF called on Spanish authorities to take advantage of robust economic growth to focus on chipping away at public debt, which remains high at around 100% of GDP.

It added that the country needs to address youth and long-term unemployment rates, which are among the highest in Europe.

Thousands of new jobs are being created as the economy heals, but many are temporary and many Spaniards who say they want to work full-time are in part-time positions.