Spanish Economy Remains in Recession

Click to read article

gross domestic product: a measure of economic activity in a country
austerity package: a package, designed by a country's government to minimize its budget deficit
monetary union: the European nations who merged their national currencies together to create a single  currency (euro)

The economic recession is not limited to the American nation; it has globally affected other continents such as Europe and Asia. While America and China have seen a resurgence in economic and consumer growth in the last year, certain countries from Europe still struggle to bounce back to a healthy economy. One country in particular, Spain, finds itself at a stagnant point in terms of restoring its economy. Spain, Europe's fifth largest economy, holds the highest rate of unemployment among other nations in the eurozone. In the whole year of 2009, Spain's economy declined by 3.6%, with unemployment rates reaching its highest point in December at 19.5%. Spain's government predicts thata an economy recovery will occur in the second half of 2010, but Spain's public debt is expected to jump 19.1% between 2009 and 2010.

Spain's recession is not uncommon if compared to today's worldwide economy. Many nations who integrate their produce into worldwide trade find their economies staggered because as one country falls into debt, it affects other countries in a domino effect. Spain's recession may have occurred due to reliance on other countries' trade, but with that trade being faulty, Spain fell into debt. I agree with Spanish bank analyst,  Ralph Solveen, about Spain struggling to catch up with the other nations of the monetary union. My own prediction is that if Spain is able to approach its economic problems at the root, with unemployment, and work to reverse those high statistics, then the country will begin to have positive economic growth and work off its debt little by little.