Spain: the crisis scared off hundreds of thousands of people

Spain continues its descent into the depths of the crisis. After the downgrade of the sovereign debt of Spain, Friday, October 14, reduced from AA to AA-, it is the turn of the city of Barcelona and the Madrid region of degraded their ratings from AA to AA-.Standard & Poor's also assigned to the two communities a negative outlook, meaning itcould still lower their medium-term notes.

These announcements came as the crisis in the euro area is growing and the country has a low growth, very bad finances and regional unemployment rates over 20% in 2011. The Spanish Government has committed to reduce its budget deficit to 6% of GDP in 2011 and 3% in 2013, after 9.3% in 2010. A bet that seems difficult to win.

LACK OF OPPORTUNITIES

Another consequence of the profound crisis in Spain for months could also bedemographic. The Financial Times called it the "exodus" of some of these people whocan no longer make ends meet: migrant workers. "After a decade of immigration and population growth, the Spanish population is now waning," the newspaper reported, citing a study by the National Statistics Institute (INE).

Entre 2002 et 2008, la population espagnole a augmenté d'environ 700 000 personnes par an du fait de l'accroissement naturel et de l'immigration du travail. Cette année, elle n'augmenterait que de 100 000 personnes environ.

The explanation comes from the lack of prospects for migrant workers, mainly from Latin America. They would be several "hundreds of thousands" to leave the country, the Financial Times. Most choose to visit other European countries, like Germany orEngland.

HALF A MILLION PEOPLE IN LESS IN A DECADE

"If current demographic trends persist, Spain could lose more than half a million peopleover the next decade," said the INE's report. This announcement surprises. The country was known for its great capacity of migrant workers. Most of them finding employment inthe construction sector in the growth of real estate, now discontinued.

But according to Carmen González Enríquez, a researcher for the Elcano Royal Institutethink tank, the result of the interruption of growth will not be a bad thing. "The lack of activity Ches immigrants, most of whom do not have the right to receive aid, is a potential source of conflict." She continues: "We must remember that those who leave the countryare unemployed. Their presence in Spain is good neither for the real estate market, or for the retirement system. Even less for growth."

Discordant voices rise. Some are worried that young graduates, including foreigners who were naturalized, leaving the country for lack of prospects. The number of graduatesleaving the country is not quantifiable, but there are indications that those who have left the country for Britain, Germany and Latin America have some knowledge as thedemand for migrant workers of these countries is based on the inherent requirements ofthe domestic economy, says the Financial Times.

-Amal Derbeli-

Posted in: All econimics