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The pain in Spain

Spain faces productivity challenges, a heavy debt burden, restrictive macroeconomic policies, and serious demographic challenges. And that is a story that does not necessarily end well.

The biggest driver of growth in Spain over the last year has been increased private consumption, fuelled by falling unemployment and rising real wages.


SPAIN is the eurozone's latest poster child for austerity and structural reforms. Its economy has expanded for eight consecutive quarters, steadily gaining momentum and easily outperforming the rest of the currency union. Export growth has matched that of Germany; unemployment has