The Spanish Economy

When Prime Minister Hose Luis Rodriguez Zapatero's socialist party took power, he was able to concentrate on off the beaten track issues such as Gay Marriage. He could also concentrate on home issues such as regional autonomy and how to deal with ETA (the Basque separatist movement) and national identity.
The economy seemed just fine and there was a positive outlook. Things have changed now and the economy has suddenly taken a dive.

Building projects have all but come to a stand still with many investors losing their money. Property sellers left it too late to get out while the going was good. They didn't seem to want to believe that the economy could swiftly change into a stagnant market, where prices soar and jobs are cut.

Well, stagnation appears to be over and we are diving into the murky depths of banks refusing to lend mortgage money, empty, half built housing estates and the government finally admitting that , yes, it's getting bad and will be getting worse.

Spain has enjoyed a booming housing economy for more than ten years. Property being one of the thrust motors of its financial vehicle. When that goes,then there isn't much one can do but watch the dominoes fall. The tourist industry and the car manufactures and building trade are all effected by each other.

So how will this affect expats and co living in Spain?


well, we are going to have to deal with rising inflation just the same as local people. very often, expats living in Spain, are English teachers. In some parts of Spain an English teacher has a better chance than some of the locals when it comes to income.

Where I live in Andalusia, local people who have to work in bars and restaurants often earn about 4-6 Euros and hour. Less than half that of an language teacher. The further north you live in Spain, the better your income (when in a city like Madrid or Barcelona.)

Others, who work in what we call the professions, ofetn earn less than their British counterpart.

The price of food and rent has risen over the years - it used to be cheap in comparison but has steadily risen over the last 5-7 years. And, is still rising.

The point is not believe the old idea that Spain is cheap living - we all have to work for a living and paying the rent is aften a good chunk of your income. In spite of this, I must say that when living in Spain today, the price of a pint and a loaf of bread seem similar to Blighty or the States, but the life-style is very different.

The Spanish people are hard working people who have a balanced attitude towards life. They like to work to live and not live to work. Even the poorest of bar workers will find a few euros to go out and enjoy the night with friends and family - often.

If you working as a language teacher and have a fairly decent position with a school, then I'm sure you will earn enough to live comfortably and be able to go out and enjoy the night, go to the beach when you please and maybe even save a little for a rainy day.
Remember, here we work hard (not all the hours God sends) to enjoy life.

More to come.......