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Chart of the day: Correlation between bad debt, unemployment and GDP in Spain

Scott Barber of Reuters shows us with the chart below that over the last 30 years bad debt in Spain has tracked unemployment and moved inversely with GDP growth. The higher the percentage of doubtful loans is, the lower GDP growth and the higher unemployment are.

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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.