As happened last Friday with King Juan Carlos, the Spanish economy seems to have encountered (and on several occasions in recent months). And there are those who speak of reforms to prevent such slip becomes a fall that left more than a bruise. What's happening in the Spanish economy? The Spanish economy is facing several negative situations at the same time. Lin Dan will not settle for partial explanations. One is what is happening to the value of the euro. The appreciation of the euro is playing a very dirty trick to Spain. The current account deficit reached in the first quarter of this year marked a record: it was nothing more nor less than the 12.1% of GDP. How did this happen? The main blow to the Spanish current account gave the trade balance deteriorated significantly.

Is that imports are growing at an annual rate of 10.5%, representing a growth rate more than doubled from that seen in the evolution of exports (Which only grow to 5.1% yoy). But one of the factors behind the increase in imports is the increase in energy prices and that Spain is a net importer of energy, which comes mainly from Russia and Norway. Spain 85% dependent on foreign energy, a situation that makes him more vulnerable. And if external damage was not enough, this increased energy costs are creating increasing inflationary pressures. In fact, preliminary data realize that in the month of May, inflation stood at 4.7% year, its highest level of the last eleven years. This situation, greater inflationary pressures, occurs in a context of economic slowdown (which some already are giving him the nickname of "recession").