Caretaker Prime Minister Pedro Sanchez’s popularity may have taken a recent surge in the polls, but his continual failure to secure enough cross party support to form a solid government is damaging the country’s global image and its economy.

Spanish economic growth slowed more than expected in the second quarter, adding another layer of gloom to an increasingly fragile situation in the euro region.

And, after months of political stalemate in the euro area’s fourth-largest economy, the clock is ticking for Sanchez to cobble together the support he needs to form a new government after his first attempt failed earlier this month.

Domestic sales - partly because of the "uncertain political environment" have dipped, according to the industrial and retail sectors.

Further to that, Spain’s global image has taken a knock.

The country has fallen from 25th to 27th place on the Good Governance Index, compiled by the MESIAS project with support from España Global (or Global Spain), a state agency working to monitor and improve the country’s image abroad.

The index ranks countries in six different areas: control of corruption, government effectiveness, regulatory quality, rule of law and voice and accountability, and neither a government nor a budget, unless Sanchez moves quickly, the situation will only get worse.