THANKS TO LANCELOT DIGITAL
The President of the Government of Spain, Pedro Sánchez, continues to assure that the Spanish economy is doing well, however, not all economists agree with this statement. In an article published in La Gaceta Económica by its director, Antonio Salazar, an exhaustive analysis is carried out of what the economic reality of the country is and if it is true, as the president says, that it goes like a motorcycle. Salazar maintains that Spain is no better than it was in 2018, before Sánchez came to power, and to support this statement he analyzes the variables one by one.
GDP Growth . In these four years, Spain has suffered a fall of 1.1% when the euro zone as a whole has experienced growth of 3.2% or in the US 5.5%.
Public spending. Spain has not grown as an economy, but its public spending has skyrocketed. The Sánchez Government started with 42% of GDP and has taken it to 48%. This means that almost half of all spending in Spain is carried out by the public sector.
Public debt. The debt has also skyrocketed. It is 12% higher than in 2028. Spain is currently the fourth most indebted country in Europe. Spain, at levels of 112% of GDP, will have to allocate a huge amount of resources to debt repayment.
Public income. If the economy does not grow, the only way for states to have more income is through taxes, and these have skyrocketed in our country. In 2018 public income was 39.2%, at the end of last year it was already at 43.4%.
Rate rise . The cost of debt has risen in 18 months as much as it fell in the previous 10 years. We have gone from interest rates close to 0% to rates above 4%.
The conclusion of all this, GDP per capita has been lost, public spending and public debt have increased, interest rates have been raised, it cannot be other than a complicated future. Salazar maintains that since 2007, Spain has been one of the most irresponsible economies in Europe and advises putting aside Sánchez’s usual economic populism and balancing the books. As? Allowing a strong private sector, reducing regulations to make competition better and make the country more efficient than it currently is.
Lanzarote is not immune to this economic situation . We have a poorly prepared population, a housing shortage (lack of public housing, enormous population growth in the last 30 years, uncertainty around the new Housing Law), an economy based on the service sector with lower salaries than in industry. ,