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Spain’s Wounds Run Deep as Economy Retraces Crisis Losses

While growth is back on track, employment and savings continue to struggle amid rising inequality

The Spanish national flag is seen flying near the Plaza Colon in Madrid, Spain, on Tuesday, Feb. 14, 2012. Italian and Spanish borrowing costs plunged to the lowest in at least 11 months at debt sales today as investors ignored downgrades by Moody's Investors Service.Photographer: Denis Doyle
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It has taken the Spanish economy a decade to claw back lost output after its worst crisis in modern history, but the wounds are far from healed.

While gross domestic product is this quarter on track to finally reach the level registered in 2007, employment is almost 12 percent lower, wages remain subdued and social inequality has risen even as the nation extends a four-year recovery.