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MACROECONOMIC REPORT
SPAIN
YURIKA MURASAWA
YURIKA MURASAWA
Country Background
Spain borders the Mediterranean Sea and is
located in southwestern Europe. The
country’s failure to continuously embrace
mercantile and industrial revolutions resulted
the country to fall behind in it's economic
power. Although Spain was not particularly
altered during the World Wars I and II, it has
been afflicted by a civil war between 1936-39.
But after the change to democracy and the
swift modernization in the economy, Spain’s
economic growth has started to increase.
Now, Spain is able to maintain a GDP per
capita of $29,400 which is significant
considering it is a small country and yet it is
able to be ranked 48 out of 227 countries.
Since Spain is basically surrounded by various bodies of water, it is constantly able to
export and import goods from other countries, thus paying less for their transportation
cost as it is not a landlocked country. Overall, Spain is considered a NIC as it may display
some MEDC indicators and LEDC characteristics from its literacy, infant mortality and
unemployment rate.
Literacy Rate
In 2003, Spain’s literacy rate was very low with 97.9%, which indicates that more than
2% of the population who are over 15 years old cannot read and write. Since a literacy
rate of 99.9% is considered as a MEDC, this country’s literacy rate shows a LEDC
characterisitic as it is below the ideal percentage. Although the number may be small,
the drastic growth in the literacy rate can be observed over the course of the years (as
shown in the graph). The development from 92.8% to 97.9% of the population
becoming literate, between the years of 1980~2010, may have resulted because of the
improvement in their education system and change in the laws. It has become
mandatory for students to be enrolled in school for 11 years, as a compulsory education
for students. Also, the disparity between the male and female percentage of the literacy
rate is exhibited. While 98.7% of males can read and write, only 97.2% of the female
population is educated. This is similar to many other countries because a trend where a
higher percent of the male literacy rate than the female population is identified.
Infant Mortality Rate
In comparison to the literacy rate, the infant mortality rate in Spain is rated as a MEDC
characteristic. As of 2011, there are a total of 3.39 deaths out of 1,000 live births which is
ranked 212 in comparison to other
countries in the world. Since the lower
the percentage of the infant mortality
rate is better, Spain is indicated as a
MEDC in this case because of the low
number. The infant mortality has
decreased drastically compared to the
rate in 1918, since the flu pandemic
has spread during that period and
caused the health care to become very
poor. But with a very significant
comeback and improvement in the
country, Spain was able to maintain a better health care and a healthier environment for
the people of Spain.
Unemployment Rate
The unemployment rate in Spain is 20.1% (2010 est.) which is ranked 166, in comparison
to the world. The growth in the Spainish economy began to slow down in 2007 and has
eventually reached a recession during the second quarter of 2008. This decline in the
economic growth resulted with decrease in consumer spending and oversupply of
housing, as the exports begun to increase. It became an incentive for the government to
advance the economy through several methods (like loan guarentees), yet it did not stop
the growth of the unemployment rate, which has increased from 8% in 2007 to 20% in
just 3 years. But overall, this statistic displays a LEDC characteristic of Spain since in an
ideal world, everyone has a job. The unemployment rate that indicates the country as a
MEDC should have a percentage close to 5% or less.
Conclusion
Spain is considered as a NIC according to its MEDC and LEDC characteristics in its
economy, representing itself inbetween from being lower than a MEDC yet showing
properties that are higher than a LEDC. Some of those indicators that represent Spain
as a NIC are; literacy rate, infant mortality rate, and unemployment rate. Overall,
Spain is rated as a NIC because it represents a few MEDC indicators as well as LEDC
characteristics; like a low literacry rate and a high unemployment rate.
References
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