Economics
Spain Warned It Will Fall Into Italian Trap Without Reforms
- Spanish central bank says economy must boost potential growth
- Governor De Cos says action needed given scale of crisis
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Spain risks long-term sluggish growth like Italy if lawmakers don’t respond to the coronavirus crisis with major reforms to address longstanding weaknesses, the country’s central bank warned.
Medium-term growth potential -- only around 1% before the pandemic -- is at risk of falling further with businesses near collapse and some sectors facing weak demand for years.