Spain - Economic Growth

Context

Spain is a country in Southwestern Europe with a population around 47 million people, making it the world's 30th most populous country. Spain has a structurally high unemployment rate, which is estimated to be between 8 and 12 percent. Due to the economic crisis from 2008-2013, Spain’s unemployment rate ballooned to almost 27 percent in 2013. However, the unemployment rate decreased to 14.5 percent in 2018 and has fallen to 12.2 percent in 2020 due to strong job creation.

GDP Analysis

Both nominal GDP and real GDP hit the lowest points  from 2013-2014. In 2016 we saw GDP increase after the economic crisis due to the government creating programs to increase youth employment.

In Spain there was an above-average inflation rate, increases in property prices and a growing family debt and Spain entered recession. As of October 2010, the Spanish economy has continued to contract, resulting in decreasing nominal GDP and increasing inflation. The rise in prices, combined with the recently implemented austerity measures and extremely high youth unemployment are heavily impacting the livelihood of Spanish citizens.

Table 1: Nominal GDP, Real GDP, Real GDP % Change & Real GDP per capita. 

	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Nominal GDP (current prices)	1.486	1.421	1.479	1.325	1.355	1.369	1.195	1.232	1.313	1.422	1.393
Real GDP (2010 prices)	1.418	1.421	1.409	1.367	1.348	1.366	1.419	1.462	1.505	1.542	1.572
Real GDP Growth (2010 prices)		0.21%	-0.84%	-2.98%	-1.39%	1.34%	3.88%	3.03%	2.94%	2.46%	1.95%
Real GDP per capita (2010 prices)	32042	30502	31636	28324	29059	29461	25732	26505	28170	30389	29564

Source: The World Bank

https://data.worldbank.org/indicator

Figure 1: Real GDP per capita

Japan – Economic Growth

Context

Japan is a country in East Asia with a population of 126.3 million (World Bank, 2019).

Its economy has been stale over the last decades,

however a three-pronged strategy introduced by Prime Minister Shinzo Abe – inevitably dubbed “Abenomics” –

has stabilised the yen exchange rate,

fattened the stock market, boosted corporate investment and encouraged the public to go out and spend.

GDP Analysis

From the early 90s until early 200s, Japan was in ‘The Lost Decade’, real GDP only grew by 1.14% annually.

From 2000 to 2020, in the span of two decades, Japan has experienced two recessions.

2002 to 2008 showed a slow and steady economic growth, however, during 2008,

real GDP plummeted drastically due to the Economic Crisis of 2008.

Japan was relatively immune as many banks did not have much of RMBS and CDO in their portfolio,

however, the decrease in exports surrounding the economic crisis,

the appreciation of yen since the outbreak of the Lehman Brothers issue, the stagnation of

the financial market triggered this.

Whilst they were able to recover with higher GDP, Japan fell again into another recession in 2020

due to the outbreak of COVID-19.

The recession was also mainly due to a severe decrease in domestic consumption,

which accounts for more than half of Japan’s economy. 

For the past two decades, Japan followed the standard business cycle as it has gone

through a recovery, boom, recession, trough within decades. 

Real GDP for Japan (https://fred.stlouisfed.org/series/JPNRGDPEXP) 

Real GDP Growth for Japan (https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2019&locations=JP&start=2000) 

GDP per capita for Japan (https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=JP)