Final answer:
Spain's loss of its colonies was due to independence movements, particularly in Latin America, costly wars like the Peninsular War, and rigid economic policies that stifled colonial autonomy and trade.
Step-by-step explanation:
Spain lost many of its colonies due to a combination of internal strife, wars, and the assertion of independence by the colonies themselves. Independence movements in Latin America were fueled by the creation of juntas and the idea of self-rule during the upheaval caused by Napoleon's occupation of Spain. At the same time, the Spanish Empire was engaged in costly conflicts, such as the Peninsular War, which drained its resources and weakened its ability to maintain control over its territories.
The costly Peninsular War against Napoléon's forces, referred to by the emperor as his "Spanish ulcer," heavily strained Spain's finances and military. Additionally, Spain's decision not to accommodate colonial demands for more autonomy, combined with economic regulation that stifled colonial trade, further pushed the colonies toward independence. By the early nineteenth century, and culminating with the Spanish-American War in 1898, Spain's New World Empire was dismantled, and the country faced a decline in its global power status.