The Spanish economy is making strides even with some factors such as high unemployment, the fragile situation in which Social Security is, uncontrolled public deficit, public debt, nearing 100% of GDP and growing social inequality .
With this background, a group of renowned economists warn about the risks if this excellent situation may change. Low oil prices and especially the expansionary monetary policy of the European Central Bank provided more than oxygen.
These factors have also contributed to increase the disposable income of families, boost exports and reduce financial commitments (interest charges) of the government to a minimum.
Another major weaknesses of the Spanish economy, high foreign debt, according to experts say. Spain's foreign debt is around 90% of GDP, a rate well above that accumulate large countries of our environment and away from the 35% average recommended by the European Commission. Experts also put the focus on the due foreign liabilities, equivalent to 1.7 billion euros, and insist on the need to reduce them.
This situation causes high external debt Spain is exposed to changes in foreign confidence in our ability to pay. The Spanish economy in 2007 grew at a breakneck pace, with little debt, budget surplus and near full employment. then appeared external shocks, which caused imbalances began to appear.
Therefore, experts warn of the consequences for Spain a recession. Replacing the contribution of external demand by domestic demand is a bad sign. The truth is that private consumption is pulling hard on the Spanish economy to the detriment of the external sector. This situation could be harmful.
Experts advise that in an exceptional situation by low interest rates have never been so low, you should take to make reforms that improve the productivity of the Spanish economy and the external sector.