Economy of Spain

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Economy of Spain
Currency	1 Euro = 100 eurocent
Fiscal year	Calendar year
Trade organisations	EU, WTO and OECD
Statistics
GDP ranking	9th
GDP (at PPP)	81.332 billion (2006 est.)
GDP growth	3.4% (2005 est.)
GDP per capita (at PPP)	,009 (2006 est.)
GDP by sector	agriculture: 3.4% industry: 30.1% services: 66.5% (2003 est.)
Inflation	2.6% (2003 est.)
Pop below poverty line	NA%
Labour force	17.1 million (2001 est.)
Labour force by occupation	services 64%, manufacturing, mining, and construction 29%, agriculture 7% (2001est.)
Unemployment	8.7% may 2006
Main industries	textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism.
Trading Partners
Exports	9.4 bn f.o.b. (2003 est.) machinery, motor vehicles; foodstuffs, other consumer goods
Main partners	France 19%, Germany 11.4%, UK 9.6%, Portugal 9.5%, Italy 9.3%, U.S. 4.6% (2002)
Imports	7.1 bn f.o.b. (2003 est.) machinery and equipment, fuels, chemicals, semifinished goods; foodstuffs, consumer goods (1997)
Main Partners	France 17%, Germany 16.5%, Italy 8.6%, UK 6.4%, Netherlands 4.8% (2002)
Public finances
Public debt	48.5% of GDP
Revenues
Expenses
Fiscal Deficit
Economic aid	ODA, .33 billion (donar) (1999)
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Spain inherited a fascist economy from Francisco Franco and firing was complex and expensive. Interventionism was widespread: basic products like bread and sugar had their prices fixed by the government. Large public firms controlled all sectors seen as strategic. Monopoly was common (e.g.: Telephone, tobacco, television, petrol, etc.). Shops had fixed opening and closing times and were not free to open all day, all week. Banking was controlled. Both passive and active interest rates were fixed by the government. All these rigidities and more lead to 10 years of industrial crisis (1975-1985), reduced convergence with Europe and expressed the need to modernize the economy and join the EC. Some moves away from these restrictions and controls, and large infrastructure projects in the 1960s resulted in strong economic growth in the so called "Spanish Miracle", but still left Spain lagging most of Western Europe, but ahead of the Warsaw Pact.

Spain's accession to the European Community, now European Union (EU), in January 1986 required the country to open its economy, modernize its industrial base, improve infrastructure, and revise economic legislation to conform to EU guidelines. In doing so, Spain increased GDP growth, reduced the public debt to GDP ratio, reduced unemployment from 23% to 10%, and reduced inflation to under 3%. The fundamental challenges remaining for Spain include reducing the public sector deficit, decreasing unemployment further, reforming labor laws and investment regulations, lowering inflation, and raising per capita GDP.

Following peak growth years in the late 1980s, the Spanish economy entered into recession in mid-1992. The economy recovered during the first Aznar administration (1996-2000), driven by a return of consumer confidence and increased private consumption, although growth has slowed in recent years. Unemployment remains a problem at 8.7% (December 2005) (IN THE INFO BOX, IT SAYS THE UNEMPLOYMENT IS 10%), but this still represents a significant improvement from previous levels. Devaluations of the peseta during the 1990s made Spanish exports more competitive, but the strength of the euro since its adoption has raised recent concerns that Spanish exports are being priced out of the range of foreign buyers. However, this has been offset by the facilitation of trade among the euro nations.

Sex industry now accounts for €18 billion - a whopping 2% share of the gross domestic product of Spain. [link]

Statistics

GDP - real growth rate: 3.4% (2005 est.)

GDP - per capita: purchasing power parity - $26,009 (2006 est.)

GDP - composition by sector:
agriculture: 3.4%
industry: 30.1%
services: 66.5% (2003 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 25.2% (1990)

Inflation rate (consumer prices): 2.6% (2003 est.)

Labor force: 17.1 million (2001 est.)

Labor force - by occupation: services 64%, manufacturing, mining, and construction 29%, agriculture 7% (2001est.)

Unemployment rate: 10.1% (2005 est.)

Budget:
revenues: $105 billion
expenditures: $109 billion, including capital expenditures of $12.8 billion (2000 est.)

Industries: textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism.

Industrial production growth rate: 0.6% (2003 est.)

Electricity - production: 222,500 GWh (2001)

Electricity - production by source:
fossil fuel: 50.4%
hydro: 18.2%
nuclear: 27.2%
other: 4.1% (2001)

Electricity - consumption: 210,400 GWh (2001)

Electricity - exports: 4,138 GWh (2001)

Electricity - imports: 7,588 GWh (2001)

Agriculture - products: grain, vegetables, olives, wine grapes, sugar beets, citrus; beef, pork, poultry, dairy products; fish

Exports: $159.4 billion f.o.b. (2003 est.)

Exports - commodities: machinery, motor vehicles; foodstuffs, other consumer goods

Exports - partners: France 19%, Germany 11.4%, UK 9.6%, Portugal 9.5%, Italy 9.3%, U.S. 4.6% (2002)

Imports: $197.1 billion f.o.b. (2003 est.)

Imports - commodities: machinery and equipment, fuels, chemicals, semifinished goods; foodstuffs, consumer goods (1997)

Imports - partners: France 17%, Germany 16.5%, Italy 8.6%, UK 6.4%, Netherlands 4.8% (2002)

Debt - external: $90 billion (1993 est.)

Economic aid - donor: ODA, $1.33 billion (1999)

Currency: 1 euro (€) = 100 cents (before 2002, 1 peseta (Pta) = 100 céntimos)

Exchange rates: euros per US dollar - 0.83 (2006), 0.82 (2005), 0.81 (2004), 0.89 (2003), 1.06 (2002), 1.12 (2001), 1.09 (2000), 0.94 (1999)

Fiscal year: calendar year

See also

• Economic history of Spain
• Economy of Europe
• Spain
• List of Spanish companies

External links

• [Banco de España (Spanish Central Bank)]
• [Statistical Institute of Andalusia]
• [National Institute of Statistics]
• [Statistical Institute of Catalonia]*[OECD's Spain country Web site] and [OECD Economic Survey of Spain]

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