stems to dress red hot inflation turkeys and the central bank raises the interest rates for the 2nd time since the elections and make press coldwell welcome to the program. on sunday people in spain elect a new parliament and a shift to the rights seems possible. that's even though prime minister pet or sanchez left, this coalition can shine where they can amik successes. the economy grew by 5 and a half percent last year, stronger than it has been in decades. so the central bank recently raised the forecast for this year from 1.6 to 2.3 percent prime is the son. sanchez has also lost a $45000000000.00 jar, a stimulus package to ease the burden of citizens sales tax on basic foods like bread, milk and eggs has been abolished and a price cap has been introduced to electricity and gas is intended to curve price increases, unemployment is around 40 percent, although still alarmingly high. it is at its lowest level in 15 years. also

a minimum income is suppose to help spans forest. but some companies say is having the opposite effect. garlic is a key ingredient in spanish cuisine and the key to understanding how spain's a minimum income works. this company on the east coast processes and exports thousands of tons of the pungent bulbs the year. most workers are in minimum wage here, but there's only been a muted response to the news that they're getting a res. yet i'm all set on the good, but not in the way it ought to be. thanks to the high prices when we go shopping. if those prices were lower, we would be better off if we had. i'm a buckle. if that is for unions, the minimum wage boost is a big step forward. is they act as a sonya? as a 6 years, i've had a continuous increase in the minimum wage. this is

a way of distributing wealth and making a large number of workers in spain better off. we're talking about more than 2000000 workers. they might say, doesn't the youngest that the highlighters employees at the garlic wholesaler mostly women benefit from the wage increase? at least the ones who still have jobs. they've been demo may not because we are sending less to the supermarkets and costs are also going up. we have been forced to lay off some workers today. if you knew that one of the holidays in the past 6 months, a quarter of the 160 workers have been let go. a few kilometers away to if he kind of adds calculates that he now has to pay $12.00 bureaus and $0.23 per hour to each worker on his mandarin farm. and that adds up at least 70 people are needed to work to 300 hector's. nearly half of the people are minimum wage in spain work in agriculture. so raising it can be difficult for employers go more interested on

monica, non profit margin chips shrinking because we can pass on our increased costs to supermarket. just put a few of them inside or you can know so, and that makes our situation very complicated. wise, i don't know, so those are going to be gone, which allows you to a field. it's not clear yet what the consequences of the minimum income will be for spain's economy as a whole, especially in the absence of statistical surveys. but what stands out. so here's the bible fee, though unemployment figures are no longer fully as steadily in spain as they are in other european countries as it was but the spices, it would all be or it could be that the increased the minimum income is difficult to digest, especially in the countryside that to get more on the situation in spain. so shortly before the elections from gail a large, he's an economist at i. e university in the dread, welcome to w. gale. now raises in minimum wage and economy that's growing steadily and

inflation which has been tamed. why is spanish prime minister petra sanchez? never the last facing an uphill battle in trying to get re elected as well. i think if we gave a little background to this, it's it, it might be a little clear, it's pain easterling really well. it's one of the, you know, it's been one of the fastest growth rates and the leading economies now for the 3rd straight year. but if we look at where the recovery is coming from, some of these issues are not hitting your average citizen. so for example, tourism is doing very well despite this heat wave, it's doing extremely well. um, but what does that do? well, it, it does bring in a lot of jobs, but they are generally covered by immigrants and it pushes up, rents, you know, lot of them are going to air b and b. so this is, this is a, a source of problems. we're seeing a strong growth in housing investment, but a lot of that is foreigners, so we're seeing a lot of american and well north american, us and,

and mexican money come in as well as your opinion, mind because spanish housing is still pretty reasonable. you're seeing how demand for housing from remote workers, again, not hitting your, your middle class and, and pricing people out of the market. and then we also have to remember that spain was one of the countries to separate the most from they, they yours own crisis from the pandemic. and so there has been a lot of ground to recover and you just recovering it. but those memories are very strong, and of course inflation. inflation is eminently unpopular. spain has a lot of inflation. it's come way down. it's doing really well. but this means, you know, lower real income. so, so these are, these are real issues for the average band or get, let's talk about unemployment. um, the unemployment rate in spain has come down significantly, but is still quite high. what are your thoughts on that? and we have to remember that spanish unemployment went up to, you know, 25 percent after the global financial crisis. and now it's down to 11 and

a half. so it's quite an improvement in spring has a hard time getting below 8 or 9. so, you know, it's quite good. of course we're interested in the quality of jobs generated, but you know, the unemployment situation is good in spain was one of the biggest creators of employment in europe in the 1st quarter, 2023. so again, we have to see it in perspective, spain does have a lot of structural issues like seasonal work, like, you know, the labor market is very rigid, which affect its ability to really get that unemployment rate down. of course, the underground employment to is, is an issue there. so it's a pretty good figure for spain. span is the recipient of the 2nd highest amount of funds coming from the recovery fund. i'm trying to address the pandemic. how is that factoring in when it comes to the spanish economy? i don't,

i think from outside it would be very easy to say that's the reason in spain is growing so well. but if we get really precise about this and we kind of, we really look at the funds they were suppose to receive over the period about 5 percent more than 5 percent of g p, which is very substantial. but spain has had a lot of trouble actually budgeting and spending those funds because, you know, getting projects approved is difficult. the bureaucracy is quite imposing. so what we find if we really look at this closely, that the central government was only in 2022, was only able to spend actually disperse 30 percent of the amount they expected to spend in that year. so we're now talking about a really low level of, i suppose you would call it execution. hopefully they'll do a little better and i'm sure you know, with elections coming, they've tried really hard in the 1st part of this year to accelerate the process. so we might see, you know, uh, even maybe of

a tripling of that amount of that could add one percentage point to gdp. but up until now we can't really credit those funds with a lot of spain's good performance. gail, are the economist at i university in madrid. gail, thank you for your time. as the turkey now and for more than a year, the countries president has been prompting the countries at central banks to cut interest rates, thereby fanning alrighty galloping installation. now in a 2nd, such move since the elections and made this central bank raised is key interest rate to 17.5 percent this week. purchase inflation is read off, especially for food the that many of the us got married last year. and they say that this pipes having 2 incomes, they are barely making ends meet offices such as sticks tight foot prices rolls by almost 54 percent in june, year on year wind. either on or to say the increase is even higher. that's being

felt even more acutely in big cities where people that are already struggling with housing costs or had on the sheet or outside what to buy together because of that. but if it was, and i don't think we're eating a balance, unhealthy diet all the best, but rather they are merely getting enough to fill our stomachs and get ready for work the next day because they're not a sy palding's an issue in the united nations food and agriculture organization says global foot prices have been on a don well trends over the last 12 months. but turkey has taken a consistent prize and food prices for $33.00 comes back or 2 months. so what's the cause of this increase? was it on the in june the significant fluctuations and exchange rates? there was a 23 percent increase in the diesel price alone. the total surface area of agricultural land is shrinking in the past 6 years. it's gone down by 15 percent wage earners

are compared to find new solutions in the face of regular, the increasing prices of the market that they showed us. we're changing the supermarket. we shop at, we're switching the brands we buy. 4 months ago, we started buying the cheaper brands we used to think we wouldn't want mark, we can't cope any other way. hybrid, all the news flash controllers, i sent them. notice in june to start off to harvest season. they were expectations that for the inflation would come in lower, but those expectations were dashed into either the prices ease world wide over the past 12 months was in contrast, we experienced a 54 percent increase. has found that the exchange rate has written by exactly 56 percent locked from june 2022 today. which of you notice is parallel to the rise and food prices. the costs of everything from irrigation fuel to fertilizer is increasing due to the rise and exchange rates. so i believe this will continue

until the winter months. these drastic price rises are in just cutting into people's pocket of some said they are changing turkey society. take care of that one. fortunately, there is no longer a middle class in turkey city time i see myself as a part of a class that is trying to maintain its life at a minimum level. i'm not in the middle class named spite being white color. i'm not in a place where i can say we have nice lives, like i said, the columbus say profound reforms are needed to come back for the inflation. and that's what's needed. our cultural and economic policy is aimed at development. the residential term relief drops up our show for more news and background information . check out our website at www dot com slash business. and of course the dw, use youtube chat, chris cockburn, roland for me and tied the entire team. thanks for watching and have a great weekend the

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