Spain. Basic economy facts

-The GPD ( PIB ) has according to recent official info grown 0,2 % during the fisrt quarter of 2011.

-The latest inflation published by April is 3.8 % of which the biggest factor is energy , commodities and food .

That shows as repeatedly recalled by Brahmason , that economy is strongly stalled due to its estagflationist structure with a very poor added value that propells costs and deflates purchasse capacity of consumers .

The spanish economic officials though , insist in that the economy is "moderately recovering" ignoring the above data which shows that the net growth is highly negative with a tremendous loss of reachness increased by the continuous loss of added value of the GDP .

Exports which were stimulated a few months back as the only option to reduce inventories are finally getting exhausted because production is refraining and exports are reducing further the operative global results of companies due to low competitivenes on low added value products offered by low technology economies at very low prices .

Economies with a strong added value GDP are able to pay bigger average salaries as they are based in production and service companies offering high technology products and services employing engineers and other proffessionals specialised in latest technologies .

Spain’s GDP is predominantly based in light basic transformation products and services companies , with high need of raw materials , energy and low proffesional requirements badly paid .

The conclusion is that having to pay the imbalances created by the housing bubble which contribution to the GDP ( PIB ) has to be replaced by non existing alternatives , the spanish economy is unable to grow in quantity and quality at the minimum levels required to pay debts , reduce deficits and recover employment and purchase capacity .

Retail sales strongly connected with consumption are simply collapsing to confirm what we are here exposing .

The real problem is that polititians of every party are not accepting that the only way to cope with the situation is the change of the economic model to substitute companies employing construction workers by companies producing high technology products and services .

The massive exodus of engineers and other proffessionals in latest technologies also confirm what we are here exposing .

The government ignores all this and concentrates in denying the tremendous housing bubble that shows the biggest gap in Europe between prices and average salary , which is an unsurmountable burden to allow for recovery together with an unemployment figure double than european average , three times bigger than unemployment in Germany and five times bigger than unemployment in The Netherlands where net average salary is more than twice the net spanish medium salary .


Published in: on mayo 9, 2011 at 4:18 pm  Comments (2)