Tuesday, February 20

How the Spanish economy has evolved over the past 40 years

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The last 40 years have been a successful period for Spain. The political situation has stabilized and the democratic system has improved. The State became a member of the EU, accepted the official currency of the euro and is actively developing. The economy of Spain is now one of the most successful in the world.

Economy of Spain: positive trends and challenges

The population of the state is also growing, a large number of people from different countries have emigrated here in 40 years. There has been an increase in life expectancy, the level of income per capita has increased almost twice. High popularity of Spain as a resort and tourist center of Europe – the number of travelers is increasing every year.
Positive trends in development make the state an attractive option for investment, many foreign businessmen invest in different market segments.
But despite the good situation, the country has a number of problems, the main of which is the decline in the birth rate and the sharp increase in public debt.
Experts highlighted a number of changes over the past 40 years, which have affected the Spanish economy.

Population growth. According to the data of 1977, 36.2 million people were registered in the country, and at the moment – 46.6 million. The number of immigrants has increased. At the end of the 70s there were 160 thousand people, and now – 4.5 million.
Life expectancy has increased by 8 years. According to experts’ forecasts, by 2040 Spaniards will live on average up to 86 years, and this figure will be the largest in the world. The mortality rate has fallen from 1.6% to 0.26%.
The income of the population has doubled. In 1977, one inhabitant had 7,261 dollars, and at the present time – 31,449 dollars.
But the birth rate has fallen by almost 50%. If 40 years ago there were 2.6 children per woman, now this figure is 1.3. This trend can lead to the aging and extinction of the nation, and is an urgent problem.
It’s a public debt. Previously, it was at 13% of GDP, and in recent years it is almost 100%. This situation suggests that the state should have the same amount of financial resources as it receives to the treasury during the year. The Spanish economy was hit by a crisis that made it difficult for the authorities to contain negative processes.
Interest rates suffer from this. If previously their rate was 22%, now they have fallen to negative values. But this picture is positive for residents who have loans and were able to save a lot of money.

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