Economic Recession in Spain: Exploring the Root Causes, Consequences and Recoveries for the Sustainable Economic Growth

Abstract

Spain is currently facing its worst financial and economic crisis in the last fifty years. The Spanish economic recession began in 2008 during the world financial crisis of 2007-08. The main cause of Spain's crisis was the burst of the housing bubble. The recession has implied a strong increase of the unemployment rate in Spain that surpassed 25% in 2012, the highest rate in western economies in that year. Therefore, this research aims at exploring the root causes, consequences and recoveries of the economic recession for the sustainable economic growth in Spain. In this study we systematically examine previous research on these topics of economic recession. This study also provides a theoretical basis for further studies on economic recession existing in other developed countries.