ECONOMIC FRAMEWORK IN SPAIN

Spain is described as a mixed capitalist economy and is the fourth leading economy in Europe. Due to this, its role in global economics affects not only its own population but has major impacts on trade and stock amongst other nations and worldwide. According to the World Bank, Spain is the 8th most powerful economy in the world and has a GDP per capita of $25,000, approximately 80% that of Europe's three foremost nations. Madrid is the capital of Spain. Barcelona is the largest commercial centre and tourist destination. Spain has been progressing economically since the Spanish Civil War in 1939 when its economy was devastated. Today, tourism, industry and agriculture play a major role in the country’s economy. Spain has seen the fastest economic development in Western Europe since the 1960’s. Tourism has played a major role since the 1960’s and in the last 40 years, tourism has been the fastest growing economic sector of the country’s GDP, helping to accelerate growth overall. Millions of visitors flock to Spain and contribute almost $50 billion USD to Spain’s economy each year.

In the late 1970s, a series of serious economic problems affected the press: paper prices, heavy losses in advertising, and circulation revenue. All of the press suffered the consequences of this economic crisis.

 During the twentieth century, Spain changed from an agricultural to manufacturing and to a services oriented economy. In 2002, the Spanish economy is based on the services sector, which accounts for 60 percent of the country's wealth. In 1996, the GDP per capita was estimated to be around $13,660. Much of the services sector is related to the importance of tourism, the most important part of the economy. The industrial sector is motor manufacture.

Rapid change and transition have in the twentieth century characterized the modern economy of Spain. During the last years of the Franco government, there was uneven expansion, followed by a period of reform and restructuring. After the 1980s, and well into the 1990s, Spain struggled to modernize its industries. Among the most significant problems are those of energy, inflation, and growing unemployment. Not surprisingly, Spain's international trade experienced important growth after the country joined the European Union (EU) Trade. As of 2002, the EU accounts for around 70 percent of international trade.

Without a doubt, one of Spain's most serious economic problems is chronic unemployment. In 1996, Spain's rate of unemployment was 22 percent, one of the worse in the EU. The number unemployed reached over three million in the 1990s. Nonetheless, a large sector of the Spanish population enjoys a standard of living that is comparable to that of other developed European economies, and in many ways, higher. It is certain that the standard of living for most Spaniards has improved in the past 30 years. Using all traditional measures such as life expectancy, literacy, educational enrollments as well as per capital income, Spain enjoys a relatively high standard of living. Salaries and wages in Spain have improved with the economy. With a GNP per capita of $14,070; thus, Spain occupies the twelfth position in the EU. Geography is also an indicator of income. The wealthiest region per capita GDP is the Balearic Island. Next come the areas of Madrid and Catalonia. The poorest regions are Extremadera and Andalusia. According to Schulte, reporters in Spain earn around $1,000 per month, while salaries for experienced newsmen would range up to $2,000 in cities like Madrid and Barcelona.

Spain's national debt is estimated at around 68 percent of its GDP. Although this is a high rate, the government has been somewhat successful in decreasing this percentage in the past years. Privatization of different companies, which proved to be controversial as reported in the press, was helpful in reducing the debt. Spain’s growing economic crisis shows Eurozone can’t escape debt trap and that its future is unpredictable.