Spain’s problems

There was heavy overbuilding in Spain as the global housing bubble caught fire there these past years. Now, Spain’s bubble has burst and it is having dire economic consequences. The Spanish National Statistics Office released the most recent unemployment figures showing an enormous jump from 8.6% to 9.6% in one month, the largest monthly change for 15 years (see story).

While it seemed the UK was destined to be the next national economy to follow the U.S. into recession, Spain is moving into the driver’s seat quickly. PSOE, the leading Socialist party, which recently narrowly won re-election, had better thank their lucky stars that the election took place last month and not next month.

See also: Other posts under the label ‘Spain.’