Spain's Economy
From Franco to the Spanish Miracle
How Spain's 1959 Stabilisation Plan ended Franco-era isolation and triggered rapid growth in the 1960s, and the transition to democracy after 1975.
Spain’s modern economy began under Franco’s dictatorship.
Autarky
After the Civil War (1936-39), Spain tried self-sufficiency (autarky), leading to poverty and shortages.
1959 Stabilisation Plan
Technocrats opened the economy: devaluation, trade liberalisation and foreign investment.
The miracle
In the 1960s, Spain grew very fast, driven by tourism, industry and remittances from emigrants.
Democracy
After Franco’s death in 1975, Spain became a democracy; the Moncloa Pacts of 1977 tackled high inflation.
Lesson
Opening up can spark rapid growth after isolation.
In the 1960s, British and German tourists began flying to Spanish beaches, bringing foreign currency.
It was isolated until 1959.
- Franco's autarky caused poverty.
- The 1959 plan opened the economy.
- The 1960s saw rapid growth.
- The Moncloa Pacts helped after 1977.
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