This presentation examines the outlook for the Spanish economy in light of the adjustment which is underway in the real estate sector. It looks at four questions: To what extent has growth performance reflected supply side improvements or excessive domestic demand dynamics? What is the risk of a severe property market correction or crash?

The Spanish economy could face recession in the second half, possibly depriving the euro zone of a principal engine for job creation and economic growth.

European Central Bank board member Gertrude Tumpel-Gugerell said in a Spanish newspaper interview on Tuesday that Spain's economy needed a more competitive export sector. Tumpel-Gugerell told Expansion the Spanish economy had so far relied on a construction boom and hefty consumption.

Spanish voters are belatedly waking up to the extent of their economic problems—although the prime minister still denies them