The Missing Side of The Spanish Economy.

The Missing Side of The Spanish Economy.

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We have been living a long period, practically since The Crisis started, in which mainstream Media is been given bad news about the Spanish Economy. That process has increased and accelerated in the last few weeks and some of the messengers seems to have a particular fixation with Spain (WSJ, FT and the young BI), particularly FT and BI (Business Insider) and in fact the last one seems that has a girl that only writes about this topic.

Luis, that is Free Press! Well, …, Yes, … that’s okay. The thing is that when it all arrives to a level of noise that the information does not include main key data, or may even hide it intentionally (I am not saying it is the case of the mentioned above) it does not matter if it is tailored by amateurs, economic illiterate journalists or just short opened positions journalists-traders and/or media-editors, the irresponsibility of damaging the whole system and the lives of 45 million Spanish citizens (that already suffer a 30% unemployment rate) overpasses all the tolerated levels.

            So, let see some data about Spain none of the unethical Media dares to tell you. You can click charts to enlarge them and check details.

Spain is a Country of Oranges and Olive Oil:

            Wrong! If you see the composition of the Spanish Exports in 2011 (check pie chart below) that is simple an unforgivable stupid prejudgement to read in serious media.


A Producer of Consume Goods:

            Wrong! Exports of intermediate goods have been gaining proportion while capital goods (the more cyclical of both three groups) keeps a stable participation.


                This fact (read again: fact) combined with the previous one demonstrates that Spain is oriented since long time ago to high value added products. It is a sustained trend impossible to ignore but easy to hide by dishonest yellow media.

The Spanish Economy is not Responding Well to Her Challenges:

            Wrong! Exports are growing much faster than imports and had a lower correction during the last recession much slower than imports, even considering the oil prices escalation. In fact, exports are higher than non-oil imports and soon they will cover the energy demand of the whole economy (Imports of Raw Materials are already covered) The Spanish export sector has a Secular growing rate that will accelerate in the next decade giving its abundance of qualified workforce and the business evidence that Globalization fits well with Spain and it is, like in the Age of Geographic Discoveries, where the future is for the Spaniards.

            You can check both facts in the charts below. The data is in nominal terms because in this Secular Period of Deleveraging the Debt is paid with nominal income. Then, the other myth is that Spain cannot pay his net external debt (170% of GDP) is another wrong idea: first, who pays it? None!; and second, none pay it in full, just deleverages its net position. If the stupid idea is to pay it in full, then the whole world, starting by the USA is doom, a psychopathic idea some Media love to have more clicks of their pathetic webs.

The Path of Trade Surplus:


The Dawn of a New Economic Model:


How Spanish Goods Trade will cover Energy Imports:



Spain is a Country of Services just for Tourism, an area that is exhausted:

            Wrong! We have seen her global industrialized trade balance, but apart from that her non-tourism balance of services is equilibrated. Her foreign tourism income has a Secular rate of growth that is far from been exhausted and now that her internal credit bubble is over and the Economy adjusts the net tourism balance is exploding, as you can see in the charts below.

            All the data indicates that the Spanish foreign side is reacting extremely well, with immense internal sacrifices aggravated by illiterate media, a pathetic novel priced economist and other compulsive talking heads (sadly some overvalued known economists) that are making fortunes damaging the financial reputation of the country. The real truth is that Spain is building an important surplus in her Current Account and it is just around the corner.

A very Healthy Tourism Balance Secular Trend.

A well diversified Global Services Economy, with a strong Tourist Sector:

 Other Global Services are also contributing significantly to a Healthy Future:

The Spanish Economy is not globalized Enough:

            Wrong! With a GDP of 1,1 trillions of Euros the figure in percentage of GDP are around as follow: Exports 22%, Imports 24%, Tourism Income or related to 4.8%, Tourism Expenses 1.8%, Other Services Exports are 5,2% and Other Services Imports 4%. Add all of it and the gross business trade in Spain is over 64% of GDP and ready to for an amazing grow and all this virtuous process could be aborted by a Media with a level of Unethical practices and Irresponsibility that is certainly historic by any Moral measure you take.

Yes, But what about the Banks?

            What?! You still make no difference between Cajas and Banks that are Global Leaders. Yes, we have a problem with the Cajas and the Political Caste (UE and Spanish), that will probably copy this work as ussual, and in these “statemen” is where Media must center  their Criticism, in this Elite of Morons, if they are interested in saying the truth (for a change?)

© Luis Riestra Delgado 06/04/2012.

(English is not my native tongue, so please excuse any writing incorrection you may find)

Part of this work has been translated and published in extend in in my blog there.

6 Comments to “The Missing Side of The Spanish Economy.”

  1. Graciella dice:

    Excellent article. I’m British, but I”m so tired of the mainstream media going on and on about what a crisis Spain is in and how it’s never going to get out, and then companies like Moody’s constantly downgrading Spain. Moody’s is one of the big causes of all the problems Europe has, and I’m guessing those who run Moody’s are probably making billions of dollars by creating such panic and then cashing in on it with their own investments.

    But…Spain will recover from this and, hopefully America and all the Moody’s style businesses in it will begin to decline 🙂

  2. jose dice:

    Hola, buen trabajo. Pero a mi al menos solo se me abren los graficos 1 y 3, revisalos por favor.

    Un saludo

  3. Wilbert. dice:

    Thanks in favor of sharing such a nice thinking, piece of writing is nice, thats why i have read it entirely.

  4. grillo35 dice:

    Y cual es la conclusion? que como los deficits exteriores se han corregido debido al hundimiento de la demanda interna España va bien? Estamos en plena depresion economica, no empecemos de nuevo con los brotes verdes por favor…

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