Last trimester
was the worst for the Spanish economy. According to Instituto Nacional de Estadística (INE) previsions, Spain’s Gross Domestic Product (GDP) shrank 1.4%
in 2012. It means that the economy has been worsening since 2011. But not only Spain
is getting worse, the entire European Union (EU) has been contracting since 2011
last trimester.
 |
| Spain, the Euro countries (UEM-17) and the entire EU (UE-27) are falling down again. |
The main
point that explains the Spanish economic decline is that salaries fell around
8.5%. It caused a great drop in the national consumption. To add insult to
injury, prices went on rising over 2.7% a year. People don’t have enough money
to buy things; articles are more expensive; they stop buying.
