Spain Economic Forecast

From 1994 to 2008, Spain’s economy was enjoying annual growth but when the global financial crisis hit, Spain suffered. Interestingly, because Spain has a mixed capitalist economy, the Gross Domestic Product or GDP on a per capita basis is considered one of the largest in Western Europe.

From 1994 to 2008, Spain’s economy was enjoying annual growth but when the global financial crisis hit, Spain suffered. Interestingly, because Spain has a mixed capitalist economy, the Gross Domestic Product or GDP on a per capita basis is considered one of the largest in Western Europe.

The President of Spain has been working hard for reform since 2004 and while some progress has been made, the economy still faces a number of challenges. For instance, the financial crisis wrecked havoc on the construction and building sector but today, this area is growing. Regarding the financial institutions, banks, and financial services of Spain, these remain strong due to oversight by the European national Central Bank being on the conservative side. In addition, it was not necessary for Spain’s government to intervene in providing assistance to financial institutions and banks like other European countries did. Today, positive things are happening to this country’s economy but still, unemployment is too high.

Spain GDP Forecast

As a mixed capitalist economy, Spain is rated as the 12th largest in the world. The country is still recovering in some areas from damage caused by the financial crisis and while growth is slow, it appears to be steady. Looking at 2008, the Spain GDP (Gross Domestic Product, Current Prices, US Dollars) was at $1,601.06 billion in US dollars. From that time to year-end 2009, a slight reduction was seen, closing at $1,464.04 billion and putting the country at number 9 for worldwide ranking. As far as forecasts for 2010, experts do not see much change, expecting numbers to be at $1,424.69 billion. The GDP for 2015 is predicted to see moderate change, closing at $1,590.01 billion in US currency.

Spain Unemployment Forecast

The Spain population is estimated at 40.5 million and of this, almost 50% or 22.97 million people are currently working. For a long time, Spain has dealt with high Spain unemployment rates. In 2008 during the global financial crisis, this rate was at 14% but unfortunately, it climbed even higher in 2009 to an incredible 18.1%. The primary reasons for this increase are rigid labor regulations that promote a weak economy, followed by layoffs and job cuts, unemployment benefit schemes that are too generous, and the speed at which the country is becoming modern forcing out more traditional industries.

Spain Inflation Rate Forecast

Now, looking at the Spain inflation rate, which is the average consumer price based on a 2000=100 index, 2008 closed at 4.13%. Over the following year, a significant reduction of 106.20% occurred, closing 2009 at a minus 0.256%. Because of that change, Spain was listed worldwide at number 160. In looking at historical data, forecasters believe that the inflation rate for 2010 will be 1.18%, another significant decrease of 560.94%. Then for 2015, forecasters believe the rate will finish at 1.783%.

Spain Current Account Balance Forecast

Another part of the economy that is critical to forecasters is the current account balance. This number consists of primary classifications to include current transfers, income, goods, and services. For 2008, the Spain current account balance was a negative $153.67 billion, followed by a moderate change of 51.75% over the next 12 months. With that change, the current account balance for 2009 ended at a negative $74.136 billion, which put the country at number 181 worldwide. As far as 2010 and 2015 forecasts, experts believe the current account balance figures will end at minus $75.04 billion and minus $70.142 billion in US dollars, respectively.