Te Spanish Socialist Workers Party (PSOE) took power in 2018 after winning a no-confidence motion against the conservation Popular Party (PP). Tey failed to secure a majority in elections a year later and formed Spain’s first coalition government since the 1930s with far-left party Unidas Podemos (UP).
Te country has dragged itself out of various difficulties since 2008 when the economy was among the worst hit during the global recession. By 2013 the unemployment rate peaked at more than 25 per cent. Conflict in Cataluña is ongoing over independence issues, whilst Covid has had a devastating effect on Spain in particular damaging the country’s lucrative tourism industry.
And although the Spanish economy grew by around 4.6 per cent last year it is facing a troubled 2023 with sluggish economic growth, high unemployment, soaring electricity prices
P46 WIRE / PULSE / INSIGHT / REPORTS
and food costs, plus drought issues.
Consumer prices rose by 5.8 per cent in January this year compared to the year before and Spain is witnessing its highest inflation in 40 years whilst GDP has not yet reached the level of 2019.
Te European Commission predicts a one per cent growth this year whilst economic output is not expected to recover from its pre-Covid 2019 levels until the latter half of the year.
Te government has introduced a series of steps to help companies and households cope with the rising costs. Tey introduced a cap on regulated gas prices which runs until end of this year, petrol rebates, mortgage relief measures and a reduction in VAT on electricity bills from 21 per cent to five per cent.
On the plus side, the all-important tourism industry is recovering. Arrivals in July last year
reached 9.1 million almost equalling those in July 2019 and the country is slowly seeing its tourist resorts back to ‘normal’ capacity.
Spain is one of the most visited countries in the world and income from the tourism sector brings in 12 per cent of GDP on average and employs around 12 per cent of the population.
Spain saw more than 71.6 million international tourists in 2022 which was 14 per cent less than pre-Covid levels in 2019 (but a 129 per cent increase on a sluggish 2021) whilst this year is anticipated to bring a record number of visitors to the country.
Expenditure from tourism last year amounted to €87bn compared to a low of €19.7bn in 2020 at the peak of Covid which rose to €35bn by 2021.
Andalucia is the principal regional destination that sees over 20 per cent of the tourists to
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180
