The history of Spain’s economy:Spain is the 5th largest economy in Europe, the World’s largest producer of olive oil, and Rupee’s largest producer of lemons, oranges and strawberries. It Is a member of the European union, The Organization for Economic Co-operation and Development, and the World Trade Organization. Spain Is It has been known to be an agricultural country, which produces a lot of wheat, barley, vegetables, grapes etc.
Ironically, agriculture is not so efficient in some laces due to the lack of mechanization, insufficient irrigation and soil exhaustion and erosion. D Spain’s main industries are located mostly in the regions of Madrid, Violated, Catalonia, Valiance, Austria and the Basque Country. A lot of these regions produce different items from one another. For example, in Catalonia, there are large textiles, car parts, and electronic manufactures and in the Basque Country you would find the rich mineral resources such as iron, coal and zinc.
Fishing on the Atlantic Coast is also a large player in Spain’s economy along with agriculture, ours, and automobile trade. 2) Recent Development of Spain’s economy:Although Spain has made a considerable amount of economic progress since the end of the Spanish Call War In 1939, It Is still not as strong as most of Western Europe. This Is due mostly to their large trade imbalance. The rapid pace at which Spain’s economy began to redevelop is known as the “Spanish Miracle”.
On another note, the success that Spain went on to make after all the trouble they had economically endured proved to be unstable because a large part of their growth was related to the sousing bubble. Spain’s macroeconomic stability considerably weakened because of the highly inflexible labor market. This discouraged the creation of Jobs. Until 2008 hit, Spain had been seen as one of the most dynamic countries of the European union. At the time, this attracted a lot of foreign investment.
The end of the housing bubble and the 2008 global financial crisis very negatively affected the Spanish economy due to their massive investments In the real estate bubble. They had been relying on their Investments that unfortunately failed. In addition, the regions In Spain that are known for producing many of their products faced some financial problems. Valiance, Marcia and Catalonia all applied for rescue funds from the central government in the summer of 2012. 3) Euro debt crisis: The Euro Debt Crisis is a crisis that has been continuously affecting the countries of the Euro zone since late 2009.
It is a combination of sovereign debt crisis, a banking crisis and a growth and competitiveness crisis. This crisis made it nearly impossible for some countries in the Euro area to repay their government debt without the help of third parties. *What started it? Rapid Growth: – Increase In demand for credit, especially In housing and construction. – Sectors grew disproportionately – causing economic Imbalance. – Increased demand for Imports. *Factors that contributed to the Euro Debt Carols:- Governments had been spending they are spending. Greece borrowed a significant amount of money – Housing market crashes 4) Employment Crisis:- From October 2007- October 2008, Spain’s unemployment rate Increased to 37%. – In July 2009, 1. 2 million people had lost their Jobs and an unemployment rate of 17. 4% was reached at the end of March. By then 2 million people were without work. -A radical labor reform was started in May 2012 that makes more flexible labor market and facilitates the layoffs. **Labor Reform refers to changes in labor laws, rules, or regulations.
It protects workers from many employment situations. … According to Been, reforms and adjustments made by the Spanish Government are beginning to create a situation of economic growth, ‘creating Jobs”, while measures are “rationalization and austerity” in public spending, will show growth employment in the coming months. Nations affected: 3reecelrelandUKPortugalltalySpain ) Spain’s economic strengths: Spain is the second largest foreign investor in Latin America while the United States is the largest. Spanish companies have expanded to Asia, especially to China and India. – Companies invested in fields like renewable energy centralization. Infrastructure… – includes basic physical systems of a business or nation. Reincorporation, communication, sewage, water and electric systems. – Spain is listed as 10th in the world for their first-class infrastructure. – Spain is a leader in the category of high-speed rail, having developed the second longest network in the Nor. – they are also leading in high-speed projects with Spanish technology all over the world.