The Loss of the American Empire

The loss of the Americas empire has been deemed one of the main causes of Spain’s economic backwardness in the nineteenth century. This chapter assesses its economic effects. The emancipation of the mainland American colonies impacted negatively on Spain’s economy, especially in the short run, with a contraction of international trade, domestic investment and the Monarchy’s revenues. However, the aggregate effects on the economy were narrower and less deep than conventionally assumed by historians and, in the long run, may have had contributed to the demise of the Ancien Régime that paved the way to the liberal society.