In the middle of last year, and without being anticipated by most analysts, the Spanish economy marked an important turning point by ending the second recession since the crisis began in 2008 and initiating a recovery on more solid foundations. Basically, this inflection point is the result of internal adjustments, the restructuring of the banking sector, and the easing of tensions in the eurozone financial markets.
Among the adjustments, “internal devaluation” has played a decisive role in recovering competitiveness and boosting the contribution of the external sector to growth. The labor market reform, introduced in 2012, has expanded the capacity to generate employment by bringing working conditions closer to the situation of companies.
