Spain’S Biggest Economic Crisis

2021-01-29   |   by CusiGO

The epidemic caused Spain’s biggest recession in 85 years. According to Leandro Prados de la escosura, in the past 170 years, only the civil war and the 1868 crisis caused a further decline in GDP. We reviewed some of the major battles in modern history.

Spain’s economy is down 11% in 2020. This is the biggest recession in peacetime, because the authorities limit the spread of coronavirus. The slight recovery in the second half of this year is not enough to make up for the damage caused by the severely restricted pandemic between March and June. The service and hotel industries were the worst hit activities in the past year, coupled with deterioration in the external sector and slowing domestic demand.

The 1993 crisis was characterized by the fact that the government of Felipe Gonzalez devalued peseta three times in less than nine months. In the early 1990s, Spain’s economy has surpassed the fluctuation of the world economy, thanks to the investment bets on organizing the Barcelona Olympic Games and the Seville World Expo. But at the end of the festival, the country encountered the government and debt ridden companies. From the second quarter of 1992 to the autumn of 1993, the Spanish economy showed a negative growth rate. Over the same period, the economy contracted by 1.1%.

The oil crisis began in 1973, when Arab countries decided not to sell crude oil to countries that supported Israel in the Yom Kippur War. At that time, the dependence on black gold was very high, and the price soared. In Spain, it has led to inflation, unemployment and an industrial and energy crisis. In 1977, moncro agreement tried to deal with it by taking measures to control inflation and government deficit.

In 1945, Spain’s gross domestic product (GDP) increased by 8.1% due to the Second World War, the weakness of Germany’s partner who lost competition, and the dictatorship under the fascist dream. The Franco state, which emerged from the civil war, intervened in the economy, nationalized multinational corporations, and shut down foreign investment. Professor Francisco Cohen explained that the 1940s was the real great depression in Spain.

The damage caused by the civil war was reflected in the largest recession in Spain’s modern history, with activity falling by 26.8% in 1936. On the basis of this huge decline, there was another 7.4% decline in the next year. It fell by 0.4% in 1938. In general, the war caused nearly a third of the loss of production, but this is not the case. As the ideology of the Franks produced everything across the country, despotism exacerbated poverty and prolonged the economic disaster for 20 years until the stabilization plan of 1959, which liberalized the economy and opened it to foreign capital, thereby boosting GDP.

The Cuban war of independence began in 1985, and the United States was involved in the conflict in 1898. The military escalation in Cuba and the Philippines has exacerbated a crisis that has been triggered by falling international agricultural prices, the thallus plague and banking problems. In 1902, the issuance of securities to finance the colonial war made public debt 123% of GDP. Since then, public debt has begun to decline due to the restructuring of the Fernandez villavide Orchestra and financial reform. In order to get rid of the crisis, Spain devalued peseta and implemented trade protectionism. After the disappearance of the colony, the capital of Cuba returned from Cuba, which benefited it a lot.

The root cause of the serious crisis between 1866 and 1868 was railway investment. They contribute to a similar situation Our website Twenty years ago. They drag them to the bench. Two Catalan entities fell, causing panic. In addition, the number of entities has decreased from about 60 to about 15. The financial crisis in an explosive cocktail party, coupled with a series of crop failures, led to a survival crisis, such as riots in Seville or Granada. In addition, Catalonia’s textile industry recently suffered serious difficulties due to the lack of cotton due to the American Civil War. All this led to a glorious revolution, the overthrow of Queen Elizabeth II.