It’s a broader trend in Southern Europe and I don’t see it being over soon. In 10 – 20 years it won’t be poor east and rich west anymore but poor south and rich north.
It was already politically toxic in this crisis and will be even more so in the next one.
I’m pretty sure that Sanchez doesn’t have the ability to pivot Spain’s economy away from tourism and onto more steady streams of income on normal times, and definitely not during the pandemic. Live and learn.
Just because the spanish economy grows less than the EU average, doesn’t mean that there isn’t a recovery in Spain. Others are just recovering faster and many even slower, Germany for example.
> He cites three factors — faltering household consumption; rising energy prices that have contributed heavily to inflation; and a delay in the use of the EU’s €800bn recovery fund. Spain is one of the fund’s main beneficiaries, with €140bn of grants and loans over the next six years.
> Torres said Spanish households had proved reluctant to spend the €55bn in savings he estimated they built up in the pandemic. He links that nervousness to a sense of precariousness in the workforce — about a quarter of jobs are temporary — and the impact of energy prices. Even before recent record highs, Spaniards spent proportionally much more than elsewhere in Europe on electricity — an average of more than 8 per cent of net disposable income in 2019.
> Antoni Cañete, the head of Pimec, Catalonia’s small and medium business association, also highlights the impact on growth of the supply chain crisis on sectors such as Spain’s crucial auto industry, and problems with the tourist season, which started poorly, although it rallied in late summer.
> According to a recent report by AIReF, Spain’s fiscal watchdog, the government had access to almost €5bn of the recovery funds by the end of August — covering the latest data available — but had only spent €104m. While economists agree that the funds are better spent well than quickly, the watchdog said the delay would slow their impact on growth.
—-
[Some graphs about the retail household consumption.](https://twitter.com/_combarro_/status/1467096380632145921). We are the only Euro-zone country where non-food retail sales for 2021 are expected to be lower than 2019, despise the population has 55 billions more in savings than expected by trends.
Don’t know any the content of the article, but the graph represents growth quarter to quarter, so it could be low not if it was very high previously
7 comments
Perro Sanxe bad
Spain has been stagnating on 90% of EU PPS per capita for a decade now. [1](https://ec.europa.eu/eurostat/databrowser/view/tec00114/default/table?lang=en) On top of it it was the hardest hit country in EU in 2020.[2](https://ec.europa.eu/eurostat/databrowser/view/tec00115/default/table?lang=en) Spanish PPS per capita is now lower than transition champions of Slovenia, Lithuania and Czechia.
It’s a broader trend in Southern Europe and I don’t see it being over soon. In 10 – 20 years it won’t be poor east and rich west anymore but poor south and rich north.
It was already politically toxic in this crisis and will be even more so in the next one.
I’m pretty sure that Sanchez doesn’t have the ability to pivot Spain’s economy away from tourism and onto more steady streams of income on normal times, and definitely not during the pandemic. Live and learn.
Just because the spanish economy grows less than the EU average, doesn’t mean that there isn’t a recovery in Spain. Others are just recovering faster and many even slower, Germany for example.
Spain
https://tradingeconomics.com/spain/gdp
France
https://tradingeconomics.com/france/gdp
Italy
https://tradingeconomics.com/italy/gdp
I don’t think your data tells the story you are trying to sell
Some explanations, from [FT](https://www.ft.com/content/2af9039d-b2e1-4392-a5d3-cfb559f550f0):
> He cites three factors — faltering household consumption; rising energy prices that have contributed heavily to inflation; and a delay in the use of the EU’s €800bn recovery fund. Spain is one of the fund’s main beneficiaries, with €140bn of grants and loans over the next six years.
> Torres said Spanish households had proved reluctant to spend the €55bn in savings he estimated they built up in the pandemic. He links that nervousness to a sense of precariousness in the workforce — about a quarter of jobs are temporary — and the impact of energy prices. Even before recent record highs, Spaniards spent proportionally much more than elsewhere in Europe on electricity — an average of more than 8 per cent of net disposable income in 2019.
> Antoni Cañete, the head of Pimec, Catalonia’s small and medium business association, also highlights the impact on growth of the supply chain crisis on sectors such as Spain’s crucial auto industry, and problems with the tourist season, which started poorly, although it rallied in late summer.
> According to a recent report by AIReF, Spain’s fiscal watchdog, the government had access to almost €5bn of the recovery funds by the end of August — covering the latest data available — but had only spent €104m. While economists agree that the funds are better spent well than quickly, the watchdog said the delay would slow their impact on growth.
—-
[Some graphs about the retail household consumption.](https://twitter.com/_combarro_/status/1467096380632145921). We are the only Euro-zone country where non-food retail sales for 2021 are expected to be lower than 2019, despise the population has 55 billions more in savings than expected by trends.
Don’t know any the content of the article, but the graph represents growth quarter to quarter, so it could be low not if it was very high previously