3. Analyze Spain's economic system and how the government of Spain mak economic decision.

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Spain adopted democracy since 1975 and it's economy includes manufacturing, financial services, textiles, footwear, chemical and tourism industry. Spain has the Euro zone's fourth largest economy but still the rate of unemployment in Spain is very high. Spain has a capitalist economy as it includes private freedom,combined with centralized economic planning and Government regulation. Spain is also a member of the European Union.

Spain is a developed country as it has a strong per capita income, High GDP, a long life expectancy rate and low infant mortality rate.

The economy of Spain has been rated moderately free for nine years as GDP growth decreased in the past two years as individual consumption level went down and external demand had become low.

However, economy of Spain stuck in financial crisis from 2008-12 because of increased demand for house properties at higher prices and at lower supply. There was also unsustainable high GDP growth rate. Government revenue had increased by increasing property tax investment and construction sector but still there was heavy increase in Government expenditure that caused Economic Crisis in Spain.

The Government of Spain is the central body of persons having all of the power of decision making. As there is democracy, there is participation of citizens in decision making and local government should take into consideration the collective decision making.

Decision making is between the central Government and individual regions or states as there is democracy and federalism in Spain.

Rahul Sunny answered 6 months ago

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