Category Archives: Spain

Spain

Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)

Global Economy, Sin categoría, Spain

THIS REPORT WAS PUBLISHED BY THE HERITAGE FOUNDATION HERE.

Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)

The Spanish economy is under serious threat. The Sánchez Administration is using the excuse of a serious health crisis to enact policies that undermine investor and business security and restrict personal and economic freedom. Such interventionism will trap the economy by increasing fiscal imbalances—Spain’s historical mistake—and put the country on a destructive track that will erode freedom and result in excessive spending, more debt, and rigidity. The long-term social and economic consequences of these mistakes can be enormous. Instead, the government should implement serious measures to enhance economic freedom and allow a strong recovery soon.

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Spain’s exporters drive robust economic recovery (My comment in the Financial Times)

Spain

Please read the rest of the article here.

In the early 2000s the Spanish economy was also booming, but it was on the back of debt-fuelled domestic demand, an overheated and uncompetitive construction sector and a severe housing bubble. The trade deficit reached more than €100bn. Now exports make up a third of national output, compared to a quarter before the crisis, and there was a €22bn current account surplus in 2017. The domestic construction sector has shrunk rapidly, replaced by manufacturing and other high-skilled industries. “The Spanish economy is seeing robust growth, but also more resilient growth,” says Daniel Lacalle, chief economist at fund manager Tressis. Moody’s, on issuing their ratings upgrade last month, said: “It has become increasingly clear that structural changes in the economy have changed the growth model to one that is broader-based and more sustainable than in past recoveries.”