United Kingdom vs. Spain

United Kingdom vs. Spain

20/11/2013 | María del Carmen González (Alumna UC)

The Great Recession began in 2008 and originated in the United States. Among the main factors causing the crisis, there would be the high prices of raw materials due to high inflation, the overvaluation of products, global food and energy crises and the threat of a worldwide recession caused a credit crisis, mortgage defaults and downward market confidence.

The Great Recession has affected developed countries, while its consequences are observed mainly in the world’s richest countries. Two of these countries are the United Kingdom and Spain.

In Spain, one of the main consequences the recession has had on the economy is the sharp rise in unemployment. This is due to job layoffs that have happened at large number of companies. Without a doubt, the most affected sector is construction due to the end of the real-estate “boom” and posterior sales decline. Moreover, another sector severely affected by the recession is the financial sector. Defaults in many businesses and individual bankruptcy along with the mismanagement of banks led to State intervention in some financial institutions. The financial sector was affected by the construction sector because of mortgages and loans that were granted are now not being returned.

However, the United Kingdom was badly affected by the financial crisis due to the weight of the financial sector in its economy. The financial crisis severely damaged public finances of the country. The priority for the British government is to improve the budget deficit situation, despite the social consequences that may arise as a result of the cutbacks (in Spain, cutbacks are also being made in various areas, thereby affecting the entire society). On the other hand, the United Kingdom also has the problem of unemployment, but its unemployment figure is lower than Spain´s (United Kingdom 7.6%; Spain 26.6%). http://www.datosmacro.com/paro (unemployment data).

As we can see the recession has mainly affected the financial sector in all countries because of the type of global economy we have. The UK and Spain are two clear examples of the situation that exists today, but they are not the only ones because in Europe all countries, to a greater or lesser extent, have been affected by the economic crisis of 2008.

Nota: Este artículo ha sido elaborado por María del Carmen González, alumna de la Universidad de Cantabria como una de las actividades enmarcadas dentro del programa de capacitación lingüística, dando su permiso para la publicación del mismo en FxM.

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