AltAusterity Digest #7 July 27-August 2, 2017

Portugal’s economic recovery exists in a climate of tension between the ECB at the regional level and the Socialist Party at the national-executive level. Despite the promising numbers for Portugal’s economic forecast, not all commentators are convinced by Prime Minister Antonio Costa’s anti-austerity agenda.

The OECD has released its first ever OECD Multi-Dimensional Economic Survey of Argentina, identifying challenge areas for Argentina’s continued economic growth. Included in these challenges are reducing the fiscal deficit, including revenue-neutral tax reforms, strengthening the social safety net, improving education, and correcting labour market informality.

The New York Times examines Spain’s economic recovery, with a focus on labour market reform. Despite the turnaround from the crisis, unemployment and youth unemployment are still among the highest in the Euro Area, and wages have remained depressed even as jobs have returned. Growth has been driven largely by low unit labour costs that have helped Spain expand its export sector.

The most recent U.S. country report from the IMF identified ten ways to expand economic growth. Among the suggestions are a gradual and sustained reduction in the general government deficit, lowering tax rates and fewer exemptions, supporting low- and middle-income families, and protecting the financial sector through regulation and supervision.

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