Nobody can say, but if I were to make a prediction, which is why I am writing this post, I would say they are wrong. Spain will recover at a good rate. There are two key factors which some experts resort to with regards to the Spanish model to support the argument that Spain will experience more problems than other countries:
1. High unemployment, which can drag down domestic consumption.
2. The excessive stock of unsold properties.
With regards to real estate, if you have followed my previous posts you will know that thanks to the fall in prices the stock will quickly be reduced. This month QSD Group is heading towards record sales, and our company is not alone.
As for unemployment, while this is a tragedy for many families, it represents a means of rapid adjustment for increasing the country’s productivity, less people to do the same work. For many years it has been said that Spain’s greatest problem was low productivity in comparison with other similar economies. Clearly, this way of increasing productivity is the most painful of all. But Spain has something which other countries have lost: family, a powerful social network which helps and protects those people looking for a new job right now. That is why social conflict is so low in our country. If France had our level of unemployment the Champs-Élysées would already have been burned down.
The great challenge will be to create jobs for all these new unemployed. But the Spanish economy, and in particular its small and medium businesses, have always shown an admirable entrepreneurial capacity.
Let’s hope I am not wrong...
