How Can Spanish Economy Grow More Than The Italian One ?


Well, it doesn’t really take a genius to understand why Spanish economy is growing way more than the Italian one, it’s all a matter of spending, spending and spending

(original publishing date: 08/11/14)

So here is the problem many economists are trying to solve:


Spain (blue line) is growing while Italy (black line) has just entered the third recession since the burst of the economic crisis in 2008.

Take a second and think: how can an economy with an unemployment rate equal to 25% grow more than one with an unemployment rate standing at 13% ?

Seriously, think about it.

Yes, Spanish GDP fell way more than the Italian one, that’s not a bad answer.

But let’s give you a hint on the main problem here:


So, it appears that Spain has a huge deficit compared to Italy. Is Italy doing it wrong ? Or is Spain stretching its debt too much ?

Mumble mumble mumble…


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