Sales to foreign countries have driven the Spanish economy while consumption within the country has fallen off. During the crisis that hit in the early 1990s, the peseta was devalued in order to make our exports more attractive to foreign consumers.
Now that Spain is on the euro, it had to increase its competitive edge by lowering worker salaries. But investments in R&D have also helped sectors like the automobile and industrial agriculture industires to gain an edge.
This is the reason that in March, for the first time in history according to data from the Customs Department, the nation's trade balance will be in the black. If the trade surplus continues for the next several months, then Spain can reduce its financing needs and its national debt. To achieve these goals, the government should support foreign exports and lower tax on companies who sell products outside of Spain.
