NAME: LNG TH MAI PHNG

CLASS: Advanced Accounting 57

MSV: 11153515

ASSIGNMENT
COUNTRY: SPAIN
I.

SPAIN GDP CONSTANT PRICES

SPAIN GDP CONSTANT PRICES

1200
1000
800
BILLIONS

600

SPAIN GDP CONSTANT PRICES

400
200
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
YEAR

Spain's economy is the 13th largest in the world. The Spanish economy grew every year
from 1994 through 2008 before entering a recession that started in the third quarter of
2008. The Spanish GDP contracted by almost 9% during the 2009-2013 period due to the
construction sector stocks (accounting 18% of GDP) and real estate depreciation and due
to the U.S. financial crisis, ending a 16-year growth trend. However, private consumption
growth recently helped Spain's GDP growing again, reaching 1.3% in 2014.

II.

SPAIN GDP- PERCENTAGE CHANGE

SPAIN GDP- PERCENTAGE CHANGE

6
4
2
SPAIN GDP- PERCENTAGE CHANGE
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
-2
-4
-6
YEAR

The percentage change in Spain GDP changed dramatically from the year of 1990 to
2016. From 1996 until 2016, the percentage change in Spain GDP averaged 2.14 percent,
reaching an all time high of 5.03 percent in the first quarter of 2000 and a record low of
-3.6 percent in 2009. In 2009, GDP contracted by 3.6% due to the impact of the global
economic recession impact on some of Spains key industries such as the construction
industry makes this country's economy seriously declines.

III.

GROSS NATIONAL SAVINGS IN SPAIN

GROSS NATIONAL SAVINGS IN SPAIN

30
25
20
% GDP

15

GROSS NATIONAL SAVINGS IN SPAIN

10
5
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
YEAR

Overall, the Spain gross national savings showed small degree of fluctuation. There was a
steady rise in Spain gross national savings from 1992 to 2002 before reaching its peak at
24 % of GDP in 2003. After reaching its peak in 2013, the Spain gross national savings
tend to slightly decrease and reached the lowest point at 18.7% in 2011. Then, the figure
had the main tendency to go up to the year of 2016.

IV.

SPAIN TOTAL INVESTMENT

SPAIN TOTAL INVESTMENT

35
30
25
20
% GDP

SPAIN TOTAL INVESTMENT

15
10
5
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
YEAR

Overall, the total investment showed small degree of fluctuation during 26 years from
1990 to 2016. The period between 1990 and 1993 saw a decline in the amount from
25.877% to 21.07% of GDP. Starting increase from 21% in 1994 to 31% in 2007, then
there was a downward trend in next 6 years. After reaching the lowest point at 19% in
2013, Spain total investment is growing again from 2014 until now.

V.

AVERAGE CONSUMER PRICE INFLATION

AVERAGE CONSUMER PRICE INFLATION

8
7
6
5
% GDP

INFLATION, AVARAGE CONSUMER PRICE INFLATION

3
2
1
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
-1
YEAR

Overall, the average consumer price inflation changed dramatically from the year of 1990
to 2016. From 1990 to 1998 and from 2011 to 2015, the average consumer price inflation
had main tendency to fall down .The most striking feature is the lowest point reached at
-0.3 % in 2009. This is remarkable since Spanish inflation has generally been over the
EU average for more than a decade now, and 1998 was the last year in which prices for
goods and services rose as slowly as they did in 2009.

VI.

SPAIN CURRENT ACCOUNT BALANCE (U.S. DOLLARS)

CURRENT ACCOUNT BALANCE

50
0

BILLIONS OF U.S. DOLLARS

1992 1996 2000 2004 2008 2012 2016

1990 1994 1998 2002 2006 2010 2014
-50
CURRENT ACCOUNT BALANCE
-100
-150
-200
YEAR

Overall, the current account balance changed dramatically in analyzed time. The period
between 2002 and 2008 saw a dramatically plunge, hitting a low of -151 billions of U.S.
dollars in 2008 due to the impact of the global economic recession. After that, Spanish
economy is growing again and has started exporting more than importing. The figure
increases every year from 2008 through 2016.

VII. SPAIN CURRENT ACCOUNT BALANCE ( % OF GDP)

CURRENT ACCOUNT BALANCE

4
2

% GDP

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
-2
CURRENT ACCOUNT BALANCE
-4
-6
-8
-10
-12
YEAR

The current account balance (percent of GDP) is the difference between a country's
savings and its investment. If it is negative, the portion of domestic investment financed
by foreigners' savings. Overall, the current account balance changed dramatically from
the year of 1990 to 2016. The most striking feature is the lowest point reached at -9.648%
in 2007. Thus, beforing the crisis in 2008, Spain and its citizens have been borrowing
heavily to commercial banks and also to organizations like the World Bank, the
International Monetary Fund. It causes the high goverment gross debt in next years.

VIII. SPAIN GOVERNMENT REVENUE

SPAIN GOVERNMENT REVENUE

42
40
38
% GDP

36

SPAIN GOVERNMENT REVENUE

34
32
30
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
YEAR

Overall, Spain government revenue changed dramatically in analyzed time. From 2003 to
2006, Spain government revenue rose repidly and reached a peak at 41% GDP in 2007
before dropping. Then in 2009, it hit the lowest point at 35% due to the impact of the
global economic recession . After Spanish government decided to reduce the income tax,
revenue is growing again.Government revenue for Spain in year 2015 is 38.241 %. This
makes Spain No. 42 in world rankings according to General government revenue in year
2015. The world's average General government revenue value is 30.23 %; Spain is 8%
more than the average.

IX.

SPAIN GOVERNMENT TOTAL EXPENDITURE

SPAIN GOVERNMENT TOTAL EXPENDITURE

60
50
40
% GDP

30

SPAIN GOVERNMENT TOTAL EXPENDITURE

20
10
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
YEAR

Overall, the total expenditure showed small degree of fluctuation during 26 years from
1990 to 2016. The period between 1990 and 1993 saw a steady growth in the amount
from 43.963% to 47.743%. Government has been investing mostly in education, health
care, and also have some social spending responsibilities (such as social assistance). After
balancing budgets or operating at a surplus from 2002-07, expenditures spiked above
45% in 2009 and 2012 due to the stimulus and automatic stabilisers. Government
expenditures are highly decentralised in Spain, with regional governments accounting for
more spending than central governments (35.7% vs. 20.8%).

X.

SPAIN GOVERNMENT GROSS DEBT

SPAIN GOVERNMENT GROSS DEBT

120
100
80
% GDP

60

SPAIN GOVERNMENT GROSS DEBT

40
20
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
YEAR

After joining the European Economic and Monetary Union in 1997, the Spanish
economy has maintained a low gross general government debt and reached a bottom at
35.5% of GDP in 2007. However, gross general government debt has boomed during and
after the recession in 2008. Spain's public debt in 2015 has surpassed 100% of GDP for
the first time in 20 years. Spain's public debt rose due to government expenditure is not
reduced, the state budget and loans from the government spent a significant part in
helping the weak banks and high debt service costs.

XI.

SPAIN GOVERNMENT NET LENDING

SPAIN GOVERNMENT NET LENDING

6
4
2

% GDP

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
-2
SPAIN GOVERNMENT NET LENDING
-4
-6
-8
-10
-12
YEAR

Overall, Spain government net lending/borrowing fluctuated wildly during the period
between 1990 and 2016. Starting with -1% in 1990, the figure had the main tendency to
grow up to the year of 2006. Then Spain government net lending/borrowing plummeted
at -9 % in 2009. During the last five years, the figure tend to climb up.

XII. SPAIN UNEMPLYMENT RATE

SPAIN UNEMPLOYMENT RATE

30
25

% TOTAL LABOR FORCE

20
15
SPAIN UNEMPLOYMENT RATE
10
5
0
1992
1996
2000
2004
2008
2012
2016
1990
1994
1998
2002
2006
2010
2014
YEAR

By joining the European Community (later the European Union - EU) in 1986, Spain was
opening up and building market economies.The unemployment rate fell from 24% in
1994 to 10% in 2001 and reached a bottom at 7% in 2007. Due to the crisis economy in
2008 and housing crisis in 2013, unemployment rate has continued to increase and has
reached 26% in 2013. At that time, Spain has the highest unemployment rate in the world.
From 2014 until 2016, the Spain economy gradually get rid of the crisis, the
unemployment rate has improved gradually.