Spain's problematic economic recovery

Spain finally showing hints of economic recovery, but will the recovery lead to prosperity? A People's Daily column breaks it down (excerpts below).

During his visit to China, Jesús Posada, Spain's parliament speaker, said that the Spanish economy is recovering again after years of difficulties.

Maybe he is right. After a year of monetary tightening, Spain saw its deficiency reduced from 8.9 to 6.98 percent of its GDP, while its exports have grown by 3.9 percent while other eurozone countries are still seeing exports drop.

But Spain has a lot of other difficulties on the road toward prosperity. Its public debt has been increasing for years and has reached 87.8 percent of its GDP. Bad loans account for 10.8 percent of GDP.

Data newly released by the EU also shows that there are 6.1 million unemployed people in Spain, 32 percent of the unemployment total in the eurozone. The high unemployment rate will not only limit domestic needs, but also curb the eurozone's economic growth and financial stability.

The recovery of Spain is fragile and it remains a problem to turn the recovery into lasting prosperity. Spain is already taking measures, such as offering 45 billion to small and medium-sized enterprises as well as reforms in the labor market, but much remains to be done.