The Economic Crisis In Spain

Introduction

The purpose of this report is to analyse the economic crisis in Spain in the last few years, and to explain how it started, how it affected the population and how this situation has improved.

The beginning: 2008

A very serious economic crisis started in 2008 in Spain and many other countries like France, Portugal, Greece and Italy. It was caused by different reasons. One of the reasons was home building. In short, the constructors built houses even though they were not going to sell them. Another problem was mortgages. Every single person who went to the bank to ask for mortgages received them without any problem. If the people wanted loans they got them. They received whatever they wanted. They didn´t care if they could give the money back because the banks were making money through the interest they had to repay.

Consequences of the crisis

The most important problem was the unemployment that in countries like Spain has reached four million. Unemployment is a serious problem for society because many people have had to reduce their standard of living because in some families, relatives have been dismissed from work and they have had reduced their incomes reduced. The most affected by unemployment were the workers of construction and the people who worked for themselves, especially in small shops. It affected families who have taken steps like using less money to buy clothes, spending less on leisure, spending less on transport, etc.

How it has improved

In the last three years the situation has improved in countries like France, the United States, Japan and the UK but Spain, although it has improved a bit, the situation is still bad even though the number of unemployed has decreased. It shows in the face of the people. They are not as happy as they used to be. In general, the Spanish people are very friendly and they are always making jokes but in the last few years you can notice that even this has changed. People suffer from depression. In the last year things are starting to change. Now, you can see more people in the street spending money in the shops and enjoying their free time in restaurants, pubs, etc.

We can not say that the crisis is over but we can say that the end is closer.