This article describes the current state of the economy in Spain, which was previously struggling. Currently, the economy seems to be doing well as it has grown at above 3 per cent for the past three years, which is well above the eurozone average. As a consequence, rating agencies have upgraded Spain’s sovereign debt ratings, allowing for cheaper borrowing. Like most economies, they are still experiencing some challenges such as high unemployment, but there seems to be positive development in the Spanish economy overall. They are attributing this positive growth to an export driven economy and lower wages. The Spanish Secretary of State for budgets boasts that their economy is "becoming more German".
https://www.ft.com/content/19df28e6-43a7-11e8-93cf-67ac3a6482fd
2 comments:
The last part that says that they are "becoming more German" gets my attention, because some countries, especially in Europe, have been looking at Germany to shape their economy. Germany is a country that is seen as really solid and economically powerful and others want to become the same. Spain is one of this countries, and the fact that they have been lowering wages show a similarity with the German model. It would be interesting to know if in the future they will also start making workers more involved in the decision making in the companies and not leave it just to management. Also if they start keeping workers for longer periods of time, so they have more on the job experience and are more productive. We will see if they start copying more thing from the German model in order to boost their economy.
Having been to Spain the last year I can attest that Spain is in great shape economically. Although there is higher unemployment that were are used to in the US, it is right around par for European countries due to the structure of labor markets and the lower turnover rates.
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