One of the cutting-edge issues facing Spain today is the monetary downturn. For a sometime, Spain has been going through an economic downturn as such, this has seen humans lose their jobs, poor GDP growth and deficits. However, the Spanish economic increase took a positive turn that saw an awesome change in GDP, employment and industries growth. The initial economic conflict in Spain stemmed from the fact that Spain was going through a political crisis. This paper addresses financial growth in Spain as a contemporary issue.
Factors Influencing Spain’s Economic Growth
Falling oil prices reduces fee of living. As such in Spain the fall of oil prices paved the way for lower inflation rates (Cahuc, Olivier & Franck 560). At the same time, people ended up spending more and this affected the GDP. Secondly, the political arena in Spain has been on fire for the past ten years. As a result, Spain was less attractive for the tourists. For the longest time, Spain lacked solid economic growth because of loss of appeal to the tourists. Such reasons accelerated the economic turmoil in Spain for ten years. Presently, Spain is exploiting its export- led growth to boost the economy. As we speak, focus is on pharmaceuticals, automobiles, capital goods, food and beverage and such.
To take advantage of the positive economic growth, business should strive to increase their scales of operations. Expansion is important since it helps with improving efficiencies of business to adjust in larger economies as well as the digital world. In addition, Spanish companies should commit to training citizens about the skills they require to embrace the digital revolution. Lastly, the government should be keen on creating a healthy political environment that promotes growth. Otherwise, if the government is not keen, then Spain will not enjoy the economic turn for long.
Cahuc, Pierre, Olivier Charlot, and Franck Malherbet. “Explaining the spread of temporary jobs and its impact on labor turnover.” International Economic Review 57.2 (2016): 533-572.