The Spanish economy has continued to progress in
the early 21stcentury, growing at around three per
cent a year to outperform neighbours France, Italy and
Germany.The adoption of the Euro in 2002 has proved
more beneficial here than elsewhere. Spanish
companies like Zara, the fashion retailer, and banking
giant Santander have become globally relevant, while
immigration buoys the workforce and the demand for
housing. Indeed, construction has seen the biggest
recent growth, where an unprecedented boom has
created millions of new homes.The Spanish are
wealthier than ever before and consumer spending is
high. But will it last? Property looks to have peaked and
massive borrowing has financed much of the growth:
Spain may be in for trouble.
Attitudes to money
With most Spaniards fighting poverty until relatively
recently, the get-rich-quick mentality that emerged in
the 1980s is perhaps understandable. A few years on
and displays of wealth aren’t necessarily frowned
upon but the clamour for cash in theTransiciónand the
well-publicised corruption that came with it has left a
bad taste in the mouth.The Spanish have a phrase,
cultura del pelotazo,to describe the shady dealing.
The negative connotations mean that successful
business people, however legit, are often still eyed
with suspicion.Today, consumer spending and
borrowing are high: the Spanish love to pay out on
goods that were once well out of reach. However, a
traditional reticence about discussing money remains.
Don’t expect anyone to talk much about cash,
particularly not how much they earn.
325
- Identity: the
building blocks of
2. Literature
and philosophy
3. Art and
architecture
4. Performing
arts
5. Cinema
and fashion
6. Media and
communications
7. Food and drink 8. Living culture:
the details of
Industry
29.5 per cent
Services
67.2 per cent
Agriculture
3.3 per cent
(figures from 2005)
In 2005 nearly 20 per
cent of the Spanish
population lived below
the poverty line, a larger
proportion than in most
developed nations.
The average mortgage
taken out in Spain in
2006 was€140,275, a
12 per cent rise on the
previous year.
Where does
Spain make
its money?
