Economic History of Spain - Second Republic, 1931-1936

Second Republic, 1931-1936

The republican government substituted the monarchy and inherited the international economic crisis as well. Three different governments ruled during the Second Spanish Republic, failing to execute numerous reforms, including land reform. General strikes were common and the economy stagnated.

During the Spanish Civil War, the country split into two different centralized economies, and the whole economic effort was redirected to the war industry. According to recent research, growth is harmed during civil wars due to the huge contraction on private investment, and such was the case with the Spanish divided economy.