ABSTRACT
The harsh impact of the prolonged crisis which started weakening the Spanish economy in the early 1970s could be observed in the fall of the domestic rate of economic growth, in the decline of internal demand, in the diminished industrial production, in the rise of production costs and in the deterioration of entrepreneurial profits and expectations. Table 67 illustrates the diminishing contribution of the secondary sector to the GDP between 1970 and 1985. The fact that during that period industry’s participation in the GDP diminished by 6.5 percentage points does not indicate that the Spanish economy experienced a process of deindustrialization during those years; the decline of industry’s relative importance in the GDP is explained by the rising participation in the formation of the GDP by the tertiary sector.
