Spanish miracle
Economic boom in Spain 1959–1974
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Through Gross domestic product, United Nations and World War II
Initiation of boom
After a very slow recovery from the devastation of the Spanish Civil War of 1936–1939, the "economic miracle" was initiated by the reforms promoted by a group of economic "technocrats" who, with the backing of Francisco Franco, put in place new policies for the economic development of Spain. The "technocrats", many of whom were members of Opus Dei, were a new breed of politician that had replaced the old Falangist guard. They abandoned a policy of autarky and implemented "development plans" which saw the liberalization of trade and the rapid growth of industry, coupled with the normalization of diplomatic ties with the United States and the United Nations after a period of initial isolation from the aftermath of World War II and diplomatic ostracism for its pro-Axis but neutral stance. From 1960 to 1975, Spain enjoyed the second highest growth rate in the world, behind only Japan, and grew to become the ninth largest economy in the world.
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Industrialization
The rapid economic expansion reinvigorated old industrial areas: the Basque Country and Ferrol northern coast (iron and steel, shipbuilding), and in and around Barcelona (machinery, textiles, cars and petrochemicals). It also drove an enormous expansion in refining, petrochemicals, chemicals and engineering. To help achieve the rapid development, there was massive government investment through key state-owned companies like the national industrial conglomerate Instituto Nacional de Industria, the mass market car company SEAT in Barcelona, the big steel plant of Ensidesa in Avilés and the shipbuilder Empresa Nacional Bazán. With heavy protection from foreign competition in the domestic Spanish market, those companies led the industrialisation of the country, restoring the prosperity of industrial areas like Barcelona and Bilbao and creating new industrial areas, most notably around Madrid. Although there was economic liberalisation in the period, key enterprises remained under state control.
Automotive industry
The automotive industry was one of the most powerful locomotoras (locomotives) of the Spanish Miracle. From 1958 to 1972, it grew at a yearly compound rate of 21.7%. In 1946, there were only 72,000 private cars in Spain, but in 1966, there were over 1 million. That growth rate had no equal in the world. The icon of the desarrollo was the SEAT 600 car, produced by the Spanish state company SEAT. More than 794,000 of them were made between 1957 and 1973. At the beginning of that period, it was the first car for many Spanish working-class families. However, at the end of the period, it was the second car for many more.
Rise in consumer prosperity
The big rise in the average standard of living during the post-war years was reflected in the possession by households of a variety of consumer goods. In 1966, 36% of households had a washing machine, 32% a television, 12% a record player, 28% a refrigerator, and 12% a car. In 1977, however, 53.1% of households by that time had a car, 74% a refrigerator, 70% a washing machine, 34% a vacuum cleaner, 41% a food processor, 80% a television, 18% a cassette recorder, 40% a still camera and 90% a transistor radio, while in 1976 28% of households had a tape recorder, 11% a radiogram, and 34% a record player.