Sunday, March 25, 2012

In Spain, economy poised for rocky ride. (Blog 9)

In Spain, economy poised for rocky ride.

This article is about the Spanish economy, and how it is posed to meet it's downfall in a way that resembles the Greek economy. The article discusses how Spain is not yet in need of a bailout, and in fact looks to be somewhat fine on paper, but it continues, and goes on to say that Spain will inevitably need a bailout at some point. The country is not only struggling to support it's workers, but businesses entirely aren't surviving, and lending is starting to become a big issue as well. In a situation similar to the United States, a lot of the young people looking for work aren't finding any, and almost a quarter of the country's workers are without employment. This article talks about how much of the debt in Spain is private, and not owed publicly. It is above 200% of the gross domestic product, and is one of the highest in Europe in general. The government in Spain knows that the country will not meet goals for this year, and they have taken into consideration the effects this will have on the country as it is not far behind some of the most problematic places within those in Europe. Much of Europe is suffering from issues like this, the economy of the Eurozone as a whole is not great, but Spain seems to be falling further and further behind, and also seems to be making less and less progress repairing the situation. With unemployment at such high levels, and businesses owing much more than they can imagine paying back right now, the fate of the country isn't looking too bright. Hopefully with time, Spain will avoid such major issues as those facing Greece.


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