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Boom to bust reconstructing the Spanish economy

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In 2008, a decade of strong and sustained growth in Spain came to an end as the economy fell into recession. This article charts the passage of the economy into recession and examines conditions in the financial system, property market and labour market that were peculiar to Spain. Half the financial system was subject to considerable political interference, a property market bubble was allowed to develop and the labour market had developed a dual character in which one segment remained very rigid. These factors contributed to a protracted recession, accompanied by rapidly increasing sovereign debt and exceptionally high unemployment.
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Keywords: Spanish economy; financial system; labour market; property market; public debt; recession

Document Type: Research Article

Affiliations: University of Hertfordshire.

Publication date: 2010-10-01

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  • The International Journal of Iberian Studies (IJIS) is the academic journal for scholars from around the world whose research focuses on contemporary Spain and Portugal from a range of disciplinary perspectives. IJIS is interested in history (20th century onwards), government and politics; foreign policy and international relations.
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