How did Spain's economy evolve under and after Franco?

Under Franco, Spain's economy initially struggled but later experienced significant growth, which continued after his death.

When General Francisco Franco came to power in Spain in 1939, following a brutal civil war, the country's economy was in ruins. Franco's early economic policies were autarkic, aiming for self-sufficiency and reducing dependence on foreign trade. This approach, combined with the devastation of the civil war and the international isolation Spain faced due to its fascist regime, led to severe economic hardship. The 1940s and early 1950s were marked by poverty, rationing, and black market activity.

However, in the late 1950s, Franco's regime began to liberalise the economy, a shift often referred to as the Spanish Miracle. This period, from 1959 to 1973, saw significant economic growth, with industrialisation, tourism, and foreign investment playing key roles. The government implemented a series of development plans that encouraged and facilitated foreign investment. The tourism industry also boomed, becoming a major source of income for the country.

After Franco's death in 1975, Spain transitioned to democracy. The economic liberalisation that had begun under Franco continued, with Spain joining the European Economic Community (now the European Union) in 1986. This further integrated Spain into the global economy and brought additional foreign investment. The economy continued to grow, although it faced challenges such as high unemployment rates and economic inequality.

In the late 2000s, Spain was hit hard by the global financial crisis, leading to a severe recession. However, the economy began to recover in 2014, and pre-crisis levels were reached in 2017. Today, Spain has the 14th largest economy in the world by nominal GDP. Despite the economic challenges it has faced, the country has come a long way from the poverty and isolation of the early Franco years.