Current economical situation

Times are tough wherever you live however we can afford to live in Spain without too much problem.If we relocate back to the UK we both would need full-time employment.
It is still a lot cheaper to live in Spain than the UK.

It's difficult for sure, however I think we are coping better than we thought, and summer is just around the corner, so hopes are up with the tourists, I have friends that bought houses 5 years ago when no one knew what the word "Crisis" was and had good jobs so now they have nearly 800? a month loans to pay back so they have had to move back in to their parents houses and rent their houses for 500? a month (peanuts) and the rest is being payed by the unemployment office "Paro", so yes it's difficult, but the family orientated and close community of Spain are good at adapting and are coping, my mother in law is Spanish and and she is growing more vegetables and fruits than ever... at least 30% or 40% of food is provided in her back campo, this just proves my point. however unfortunately this year has been the year I have seen most Brits move back to the UK, probably for the same reason, they are going back to their families and community to seek help and find a job.

Government is about to go into foreclosure. EU tries to save it. If it fails, investors will be scared and stocks around the world, which would be bad for the U.S. economy will begin to sell.

Friend of ours who is a waiter just got offered a possible waiter job, if there busy during August, he will earn 400.00 Euros for the month doin 6 day shift alternating between Saturdays and Sundays, not tax will be paid as it is not to be declared and if he misses a day sick he'll lose 60 Euros for each day, which makes no sense.

Yesterday they were down to there last 5 Euro's until the end of the month, so there hoping he'll get this work in August, we sent some cash via Western Union until then, as they need food.

They ran out of social payments a few months ago and have been surviving on the wife doin some cleaning work.

Its not a great situation.

It's going to be tough in Spain for sme years to come. The Government are adopting strict Austerity measures to reduce unemployment, and imrpove the general economy, with a little financial help from the ECB. Also they seem to be cutting down on crime and corruption

Some analysts say the wolrd cup may boost the economy :

The victory of the Spaniards over the Dutch in the World Cup will help the economy, experts say. The euphoria of the victory improves the mood of the population, and the population in a good mood begins to spend more money and shop more frequently. According to ING and ABN Amro banks, the gold medal of the Spanish national team will boost the country's GDP growth by 0.25-0.5%. Six months ago, Spain's stock market index IBEX-35 fell by 15.8% and was among the worst in Europe. But during the World Cup the index instantly won back 5.2%.

spian in the 70,80,90s was cheap but now adays it got out hand , with the Euro . when thinks where good all over the EU hotels bar and so put there price , wich lead to the landlords doing the same , price are hight and you been asked for 2.50 for bottle beer , 3 Euros big beer , when the price at holesale price have only gone up from 50 euros a keg to 89 euros .

time hotelers , bars , restaurant , funparks and so on are and would need to bring down there prices , this would include airlines , People have money but look for cheaper deals now ...

jurdy

i see hotel bluestar , there price down to 20 euros night if you stay more then 10 days

Spain's Economy Continues Weak Recovery

Spain's economy confirmed it is on the growth path after growing for the second straight quarter between April and June, figures showed on Friday. Statistical office INE said the economy grew 0.2% in the June quarter, a modest pick-up from the 0.1% expansion in the first three months of the year. Economists had predicted 0.3% growth.

Prior to the first quarter, the Spanish economy had contracted for six straight quarters as it endured its worst downturn in decades. A collapse in the construction sector sparked the country's recession. On a year-over-year basis, however, gross domestic product was still down 0.2%. Economists had forecast a 0.1% fall.

The growth suggests the government's recently unveiled budget cuts are yet to have an impact on growth. Spanish Prime Minister Jose Luis Rodriguez Zapatero has announced steep budget cuts aimed at bringing down the country's large budget deficit. Measures include public sector wage cuts and smaller budget allocations for regional governments. Spain currently has a deficit of 11.2% of GDP, which it has pledged to bring under 3% by 2013. And although Spain's government debt load is not as worrisome when compared to some of its European counterparts, the country's private sector shoulders a massive debt overhang.

source is here (http://www.financespain.com)

Spain's had it's debt rating's cut by the last of the credit rating agencies to do so. Moody's have cut it from AAA to Aa1 !!

Hopefully this is the turning point for things to start improving :

MADRID ? Spain's hurting economy got hit again Thursday with yet another downgrade of its government debt by a major ratings agency, meaning the nation's borrowing costs will likely rise as it struggles to cut its deficit amid gloomy economic recovery prospects.

Moody's Investors Service lowered the rating from Aaa to Aa1, with a stable outlook, and the announcement dragged down stock prices from Asia to Europe.

Source is here (http://www.FinanceSpain.com)

The situation has improved by increments, the government implementing several key measures to liberalize trade, encourage investment and promote the market economy. As with other countries making the change from a command economy to capitalism, the changes have been difficult, the bulk of the population has not seen real gain in the quality of their lives, and the social fabric is under strain. Education, culture and the sciences--traditionally Armenia's strengths in the Soviet Union, have suffered the most, along with old-age pensioners who have seen their savings evaporate.

Hard facts include a WFP estimate that 50 percent of Armenians live in poverty, earning less than $25 a month and that perhaps one-fifth of Armenia?s workers have left the country, many seeking employment in Russia, Europe and the US. Perhaps the most devastating factor to the Armenian economy remains the impact of the ongoing Nagorno-Karabakh dispute.

The central policy objective affecting industry is privatization. Pending completion of the privatization program, the government is forcing state-owned enterprises to operate according to market principles. Since the beginning of 1995, no direct subsidies have been granted to the industry. This is in sharp contrast to previous years, when direct subsidies were provided on a fairly large scale via concessionary credits to firms.

Privatization has been rocky, the first voucher system for privatizing companies considered a failure, and other, auction-driven sales just beginning to be implemented. Key industry sales are beyond the means of the local population, and have been just as controversial, with expectations exceeding actual market value of companies in some cases, and alleged inside deals transferring ownership to influential locals for a fraction of their real value.
samuelson90
Cystic Fibrosis Parents (http://cysticlife.org/)

Economy Continues Recovery Weakly

it is on the growth path after growing for the second straight quarter. the first quarter, the Spanish economy had contracted for six straight quarters as it endured its worst downturn in decades

Hope all things come to life

It's world statistics day ! 20/10/10

I'm sure you're all already celebrating

Spain's national statistic institute has produced a video to celebrate : http://www.financespain.com/content/newshighlights (http://www.financespain.com/content/newshighlights)

It's an animation showing some key Spanish and Global economic figures

(p.s. you may need to pause the video lower down on th page, as it starts automatically, and could interrupt viewing of this video)

I think anyone considering a move to Spain would have to do meticulous research beforehand. To be safe, it's always advisable to have some savings to call on for when times are tough.
The lifestyle is better but nothing comes easy. Accepting the different way of life is imperative and by that I don't mean staying in tourist mode like many people do and never learn the language, customs and culture.
The most important advice I can give is to go over on an extended break, rent for a while as opposed to buying straight away as you may end up disliking the area and discovering all the hidden problems later on, but once you're comfortable with your choice, then you can say the place suits your needs and is what you're looking for.

As the old saying goes "Those who fail to plan are planning to fail".

Regarding the economy...Roubini seems to think that Spain is too big to fail but also too big to be bailed out.
Source


Luego !!!

Job market picked up recently. Still a lot of young people without jobs or on "Becarios or Pr?cticas" paying little or nothing at all, since companies are taking advantage of this. Indignados are still protesting, now helicopters are running around Madrid trying to track them down... detriment to my much needed sleep...

Tourism boosted, the Far East Asians are rolling in, and the chinese happy to shop by busloads. There are pockets of opportunities, especially for entrepreneurs, which is something this country needs more of. Great initiative - emprenadores in Madrid but government funding has been an issue lately.

The markets are still playing games with the debt crisis.. so we have to hold our breaths and hope this will pass. Most likely the early elections will help steady the market once the political situation here is sorted out. The caja problem is slowly finding resolution, with super caja conglomerate BANKIA oversubscribed though at the cost of their IPO price cut. The challenge now is to get their share price up and attracting FDI.

Spaniards are still drinking, the bars are still full. "What crisis?" as many would say... whilst tucking quietly back to their bachelor pad - at the basement of their parent?s home. I?m not an exception to this fact, tucking away at my in-law?s flat until the storm passes.

Overall Outlook - slightly positive with caution. :)

In relation to Roubini?s preaching- it?s true. Spain can?t fail, that would really mean the end of the EURO and a loooong recession for all involved and unfortunate neighbours, they already had a tough time bailing Greece twice. Though too big to fail is already a much critisised expression which we have seen failing those infallable banks... ahem Lehman ahem...

There lot problems going on around the world , not just here in spain ,
in spain building has come to stand still , Tourism is down for last few years , elections is not going do any think about the Spain debt problem , Spaniards are still drinking, the bars are still full , all what i say is the spend is down in average .

Banks and developers who need to dispose of assets quickly. cut price sales are going on , ie 6 years ago 2 bed room apt @450.000 eurso now going for 230,000 euros .

Tourism figgers sine Franco's dictatorship, when the country became a popular place for summer holidays , 70,80,90s but now were seen i dip in figgers due to few facts
1 Hotels sill model in 60-70s , (need updating there rooms )
2 Cheaper flights two outher Countries then spain
3 Cost of living increased , ie beers wine food and so on
4 Ole! . . . tourist all going to Spain again figures are on the up , link to post http://www.spainexpat.com/spain/forum/viewthread/10165/

Elections , Is it going two help are not ?
Same bunck of politician just get back in two Government and make lot off money for them self , loacl town hall investigation over spend and corruption case .

Spanards spend is down in average for year on year .... Tourism spend is down ,