According to Economic Analysts of Andalucia, the economic crisis has finally bottomed out but it will be the latter half of 2011 before any substantial growth in employment is seen.
The rate of unemployment has slowed and currently stands at 26.3% of the workforce, much of it relating to the construction industry.
Various plans – Plan Zapatero, Plan 2000E etc – have slowed the rate of decline slightly in the construction industry but this could change later in the year if these measures are discontinued and if the planned VAT hike goes ahead in July.
The economists believe that in order to produce economic recovery, reforms are needed to solve the internal problems of the economy. The lack of competitiveness, high debt, market rigidity and the financial system are all cited as contributing to the problem.
Reforms are needed, they say, in many areas, including education, the labour market and the tax system amongst others.