In the early 1990s, Spain was in prime time due to its rapid economic growth. Which makes it the 5th largest economy in the European Union. Spain's economic growth has fostered a boom in real estate marketing. So, in 2006, Spain began building 800,000 new homes. It's important to note that this represents more houses built than Germany, France and the UK combined (known as the main Eurozone member states) – but I'll explain this in detail later! Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayUnfortunately for Spain, this economic growth petered out and in 2008, Spain was seriously affected by the crisis World credit crisis considered the worst financial crisis since the Great Depression of the 1930s. As a result, the Spanish real estate market collapsed, leading to a deep recession that lasted several years. As you can see in the image below, the recession has had a negative impact on real estate investment in the Spanish real estate market. Yet with all these new homes being built for citizens, the recession was so painful that almost all interest in the real estate market disappeared. This makes us wonder: where did it all go wrong for Spain? A time when they were once the country with the largest economy in the Eurozone…unable to escape recession with the highest unemployment rates in the industrialized world to date. According to many figures, 2008 marks the start of the recession for Spain, with GDP contracting in the third quarter. Despite this, the Spanish economy still managed to grow by 0.9% and the Spanish banking system was considered strong (OECD). What was not expected was a budget deficit of 3.8% in 2008, due to falling tax revenues and longer queues as workers were unable to find work. employment outside the services. This is where Spain entered a full-blown recession in 2009, bringing the budget deficit down to 11.1%. This excessive recession caused an outcry because the socialist Prime Minister at the time, José Luis Rodríguez Zapatero, had to go against his 2010 election promises and cut spending by 15 billion euros to try to balance financing costs. In 2010, the rate of decline of the Spanish economy was reduced by the government to 0.1%, which reduced the deficit to 9.3%. However, Spain remains the country with the highest unemployment rates in Europe and is expected to face a continued spiral of falling incomes and a struggling economy. In 2012, unemployment reached a new high of 24.3% and this figure is only expected to rise if Spain fails to overcome this recession. In addition, youth unemployment is also worsening, since now more than 50% of 18-24 year olds are unemployed in Spain. This is a vicious circle for Spain, because if young people cannot find a job, they cannot earn a salary and therefore contribute to supporting the economy and the country. Not only that, but it also means that young people cannot afford to move out and be financially independent from their parents. With the loss of jobs, all those empty houses in Spain will stay that way because no one will be able to afford to live there. It is already not uncommon to go to Spain and see an adult man or woman living with their parents' family due to its declining economy. During this recession, Spain was expected to be the only Eurozone country still in recession in 2013, despite being the country with the.