Spain’s GDP per Capita Growth: 1939-1973
Economic Evolution During the Franco Era
This simple line graph illustrates the evolution of an economic indicator, GDP per capita, in Spain from 1939 to 1973, encompassing most of the Franco dictatorship. GDP per capita represents the value of the production of goods and services in relation to the number of inhabitants. The horizontal axis displays the years, in two-year increments, while the vertical axis represents GDP per capita in 1980 pesetas, at intervals of 50,000.
The graph’s general trend is upward, starting with a GDP per capita of 90,000 pesetas in 1939 and ending at 340,000 pesetas in 1973. This signifies nearly a fourfold increase in the value of this indicator over the analyzed period. However, the growth is not uniform and can be divided into three distinct stages:
- 1939-1951: Stagnation
- 1951-1959: Change
- 1959-1973: Development
1939-1951: Stagnation in the Spanish Economy
During this period, GDP remained stagnant at around 100,000 pesetas. Several factors contributed to this:
- The devastation caused by the Civil War
- A lack of gold and foreign exchange reserves
- Foreign borrowing constraints
- A general decline in production
The unfavorable international situation also played a role, as the world was immersed in the Second World War until 1945. Following the Civil War, the Franco regime faced international isolation. An autarkic economic model was implemented, aiming for self-sufficiency using national resources. Through this policy, the State controlled foreign trade and fostered domestic industry development with the creation of the National Institute of Industry (INI) in 1941.
The 1940s saw no improvement in the economic situation, and rationing cards were implemented due to severe supply problems for essential commodities. The lack of growth meant that the population had low purchasing power.
1951-1959: A Period of Change
GDP per capita increased from 100,000 to 150,000 pesetas, representing a 50% growth. The international situation favored this change. After the Second World War, the Marshall Plan was implemented in Europe, stimulating economic development. The onset of the Cold War marked the end of Spain’s isolation and its gradual entry into major international organizations. Cooperation agreements with the U.S. in 1953 were accompanied by significant U.S. economic aid in exchange for the transfer of military bases.
1959-1973: The Beginnings of “Development”
The GDP growth rate accelerated, reaching approximately 340,000 pesetas in 1973. This period witnessed the beginnings of “development.” There was a shift away from the ineffective economic autarky. The growing Spanish debt necessitated borrowing from international organizations, which demanded a more open economic policy with less state intervention. The Stabilization Plan of 1959 and the Economic and Social Development Plans between 1964 and 1973 were launched.
Foreign contributions, including technologies, investments, foreign exchange remittances from immigrants, and tourism, played a significant role in the strong growth. Another aspect was the high population growth, the famous “Baby Boom,” which contributed to the upward trend of the graph.
Conclusion
The graph does not fully reflect the increased production, as it is distributed among a larger population. The population grew from approximately 26 million in 1940 to 34 million in 1970.