Last updated: March 13th, 2014
Source: ECB & European Commission
The table above shows the evolution of the public debt in the euro area, from 2003 to 2014. With a public debt amounting to 60% of its GDP (danger limit considered by economists: 100%), Spain, if not staying in the forefront, is at least among the “good alumni” in the European Union.
And this table shows something else; when the global economy is running well, Spain does pay its debt back: for example between 2003 and 2007, Spain has reduced its debt, passing from over 48% to almost 36%. A quarter less. Who did better ?
So yes, since 2008, Spain had bigger deficits to boost an economy battered by the “subprimes” crisis, yes its debt swelled, but its flexibility margin still is important. And no, by buying a property in Spain, you will not find yourself one day owner of a house assessed in “maravidis” of questionable value.
And even considered as an investment, a property in Spain can now be interesting: whereas the consumer prices rose, even slightly, the Spanish real estate dropped by 30%. In the triangle “performance - security - liquidity” it may be a medium liquid investment, but it offers an attractive return over the years, whose interests additionally are paid by the pleasure of staying there, as often as possible.
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