MAEC Project TI03 by Sarah Quek https://padlet.com/queksarah2911/lba7ycukff7a Sarah, Wanhui, Qi Xue, Celest en-us 2018-05-14 05:58:01 UTC 2025-12-18 18:55:56 UTC hello@padlet.com Inflation in Spain q_i_x_u_e_l_o_v_e_s_t_o https://padlet.com/queksarah2911/lba7ycukff7a/wish/260344100 - The Catalonia crisis has led to an economic downturn causing businesses to scaled down their operations thus causing the overall GDP of Spain to decrease. Moreover, Catalonia is one of the major contributors to Spain's GDP of 19%.
- Spain have been facing recession for the past five years, but now Spain is slowly going through a recovery.
-The political events related to Catalonia remain as an important threat to Spain’s economy. Spanish government initially forecast the economy growth of at least 2.5% but has since downgraded to 2.3% due to the political events in relation to Catalonia.
-It affects the economy growth and causes decrease in inflation for Spain as lesser people will want to visit Spain resulting in an decrease in tourism.
-For example, Airline have since dropped its prices by 30% on flights to Catalonia due to the political conflict between Catalan and Spanish government, so as to encourage people to take the flights as an effort to maintain the level of passenger traffic.]]> 2018-05-14 06:23:58 UTC https://padlet.com/queksarah2911/lba7ycukff7a/wish/260344100 Concepts that are applicable to our topics q_i_x_u_e_l_o_v_e_s_t_o https://padlet.com/queksarah2911/lba7ycukff7a/wish/260348920 - Unemployment rate
- GDP
- Inflation
**Increase in GDP results in decrease in unemployment rate, since more people is employed, they have higher purchasing power which results to higher standards of living causing inflation to happen.**]]> 2018-05-14 06:47:56 UTC https://padlet.com/queksarah2911/lba7ycukff7a/wish/260348920 Spanish unemployment falls to pre-crisis levels queksarah2911 https://padlet.com/queksarah2911/lba7ycukff7a/wish/260350420 - Due to recession, Spaniards have lost their jobs and hence is relying on the government unemployment benefits. Also, there is an increase in the Spaniards requesting additional state help whom those are already claiming benefits from 30% in 2009 to 56% in 2017. 
- Those who have requested a government subsidy are mainly long-term unemployed citizens who have been exhausting their contributory benefits.
- Applying from what we have learnt, this is a Cyclical Unemployment which is caused by lack of jobs during a recession. Cyclical employment is caused by the lack of job during recession. When real GDP falls, companies slows down and many labor will not be needed thus, unemployment rate rises at times of recession which is a period of general slow down in economic activities
-Generally, Spain unemployment rate have decreased from 22.37% in July 2015 to 16.74% in Jan 2018, this means that Spain is improving on its unemployment rate despite several worrying factors.
-For example, factors like structural unemployment is very common in Spain especially during the real-estate boom. As the demand for buildings and development in tourism is relatively high in 2006, many concluded that education did not pay which results to higher early school-leaving rate as the demand for real estate soar.     
-However, many were out of job as the construction sector were destroyed as soon as the economy ground to a halt, leaving many with minimum skills to regain employment.
-In conclusion, unemployment rate decreases as inflation increases]]> 2018-05-14 06:55:40 UTC https://padlet.com/queksarah2911/lba7ycukff7a/wish/260350420 Brussels raises Spain’s GDP growth forecast for 2018 q_i_x_u_e_l_o_v_e_s_t_o https://padlet.com/queksarah2911/lba7ycukff7a/wish/260352858 - The Catalan crisis will cause an impact on the Spanish economy if Catalonia gained its independence. Nonetheless, it has not affected the economy of Spain as of now as its GDP growth forecast for Spain has increased from 2.5% to 2.6%. 
- Spain will definitely get the impact after the independence of Catalonia as Catalonia is shown to contribute to 19% of Spain's GDP and thus, Real GDP will drop after the split, which may significantly lead to recession.
- It is predicted that the economic growth of Spain will increase from 2.3% to 2.5% resulting in an increase of its GDP. However, there is still a significant large percentage of the Spain's labour force that are unemployed. Thus, deflation is expected to occur in the near future.
- Economic situation in Spain is slowly getting better and Spain is getting out of recession.
- However, the inflation rate is predicted to fall in year 2018 and year 2019. Reason being that even though the economic situation is improving, but levels of debt and unemployment are still high.
- There is still cyclical unemployment even though the economic situation is slowly getting better
-It was mentioned in the article that the International Monetary Fund (IMF) has reviewed its October forecast for Spain down from 2.5% to 2.4%, as a reflection of “political uncertainty”. This factor impacted economic growth significantly through physcial and human capital accumulation as “political uncertainty” may lead to a more frequent switch of policies, creating volatility among its people. Thus, it might create an uncertain political-economic environment, raising risks and reducing investment within the country. Therefore, with all of the uncertainties from the government, investors and producers are afraid to invest in the country which leads to a drop in GDP and a slower economic growth. 
]]> 2018-05-14 07:08:16 UTC https://padlet.com/queksarah2911/lba7ycukff7a/wish/260352858 Spain's new government agrees to raise pensions in line with inflation.(updated, new article) queksarah2911 https://padlet.com/queksarah2911/lba7ycukff7a/wish/268917774 - The Spain's government decided to raise the pension for the retirees due to the inflation. 
-  Spain decided to cut on spending so that the aggregate expenditure of the nation will decrease to prevent further inflation of prices of goods and services. 
-Spanish consumer prices rose in June at their fastest rate since 2017 due to the rise in cost of fuel prices. This is known as the cost-push inflation. The general price level in economy will then be "pushed up" by the pressure on the cost of production. 
- The rise in retirement pension will allow the retirees to have greater purchasing power.
- When there is unanticipated inflation, the fixed income earners cannot protect their purchasing power. And with the retirees who got their pension cannot protect their purchasing power as it is eroded by inflation. 

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