Economy of Spain
Before the economic crisis started in 2007, Spain’s economy was one of the most thriving in the European Union, but since it was severely hit and officially entered recession in 2009, gross domestic product / GDP growth in Spain has been struggling to recover. The amount of money banks have been lending to Spain due to the euro crisis is enormous, but the country still has a long way to go. There is still a vast difference between government revenue and spending in Spain, with spending being significantly higher than revenue.
Today, a look at a comparison of GDP and national debt in selected euro countries reveals that Spain’s GDP is higher than that of other countries which were severely affected by the economic crisis, i.e. Greece, Portugal and Ireland. However, when looking at the national debt in the European Union, Spain’s national debt is still one of the highest.
The rate of employment has been decreasing constantly since the crisis, while the unemployment rate in Spain has been increasing dramatically and still continues to rise. Just as in other affected countries, many people are losing their jobs while the younger generation graduating from universities are struggling to find employment. Many are leaving the country in search of work elsewhere. In 2012, Spain introduced a labor reform which is slowly taking effect.