Text 3 THE ECONOMIC CRISIS IN SPAIN

THE ECONOMIC CRISIS IN SPAIN

Spain is one of the powerful state with an expansion economy in EU from 1995. His GDP was growing year by year without any problem, but in 2007 the economy of Spain start to fall down, because of a collapse in Housing Market that can lead to a recession or a slowdown.
The economical boom of Spain started in 1995. The construction of buildings brought Spain the biggest increase in economy in EU , in the last 10 years .The main resource of Spain’s GDP was the Housing Market that consisted about 5%-15% of Real GDP every year. The approximately rate of growth of GDP for the last 4 years was about 3%-4% per year, but the economists assume that for 2008 the growth rate will be about 1%, that is meaning that there is a slowdown, and if the government will don’t care about it , this decreasing can lead to a recession
The world crisis of credits stopped the economic increase of Spain that was supported by the Housing Market that is the main resource of economy of this country. The recession’s problem is that the Spain’s bank had credited too much sold property, and now the Central Bank of Spain is afraid of the consequence that was happened in United States