Spain: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Spain has achieved an economic leap in the last two decades and has risen to be amongst 20 of the world's most significant economies. It registered annual GDP growth rates higher than 4% between 1997 and 2000 and thereafter a growth rate that is always higher than the average in the Euro zone due to consumption and to the real-estate "boom". Nevertheless, the growth factors, which were at the root of its economic growth have been weakened by the financial crisis, which touched the real-estate sector and weakened the banking system. In 2009, the GDP growth fell by 3.7%, putting an end to 16 subsequent years of positive economic growth.
The government’s stimulus policies did not prevent a rise in unemployment, which increased to as high as 18% of the active population, the highest rate in the European Union in 2009. The labour market reform which came into operation in 2010 has nevertheless helped increase the productivity of the Spanish economy. Both the construction sector and to some extent consumption were hit by the economic crisis. Although inflation is showing a tendency towards stabilization, household consumption predictions remain bleak for 2011.
Many companies are in trouble or are closing down, especially in real-estate, construction and public works sectors. Outstanding debts of companies as well as families have increased by 12% in figures but by 61% in value.
In 2010, Spain turned towards a different economic model, freeing itself from real estate as its traditional growth factor and capitalizing on improved competitiveness and a higher added value on services. With an increase of 22.4% on its quarterly net profits, Spain’s number one bank Santander reflects the country’s ambition to resist the economic downturn.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 1,467.89 | 1,409.95e | 1,536.48 | 1,575.11 | 1,615.94 |
| GDP (Constant Prices, Annual % Change) | -3.7 | -0.1 | 0.8 | 1.1 | 1.8 |
| GDP per Capita (USD) | 32,030 | 30,639e | 33,298e | 34,051 | 34,859 |
| General Government Balance (in % of GDP) | -9.0 | -7.2e | -4.4 | -4.1 | -3.8 |
| General Government Gross Debt (in % of GDP) | 53.3 | 60.1 | 67.4e | 70.2 | 72.8 |
| Inflation Rate (%) | -0.2 | 2.0 | 2.9 | 1.5 | 1.5 |
| Unemployment Rate (% of the Labor Force) | 18.0 | 20.1 | 20.7 | 19.7 | 18.5 |
| Current Account (billions USD) | -75.88 | -64.23 | -58.26 | -49.54 | -45.50 |
| Current Account (in % of GDP) | -5.2 | -4.6 | -3.8e | -2.8 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
Agriculture contributes around 3% of the Spanish GDP. The country produces wheat, sugar beet, barley, tomatoes, olives, citrus fruits, grapes and cork. It is the world's largest producer of olive oil and the world's third largest producer of wine. It is the largest producer of lemons, oranges and strawberries. Spain has limited mineral resources.
The manufacturing industry is dominated by textiles, industrial food processing, iron and steel, naval machines and engineering. The new sectors such as relocation of the production of electronic components, information technology and telecommunications provide a high growth potential. In 2009, industrial production growth rate nevertheless fell by 10.2%.
Tourism represents Spain's largest source of income, having become the second tourist destination of the world and thereby stimulating export of goods and services. The tertiary sector contributes to 2/3 of the GDP.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 4.2 | 24.7 | 71.1 |
| Value Added (in % of GDP) | 2.6 | 26.1 | 71.3 |
| Value Added (Annual % Change) | 1.0 | -10.3 | -1.0 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
Foreign trade has little impact on the country’s GDP growth. The Spanish trade deficit worsened in 2009 and 2010. Although imports fell by half in 2009, exports too lacked vigor. The energy bill reached EUR 41.8 million, which is almost 15% of the total imports. Nevertheless, its burden decreased because of the drop in Brent future price and the increase in the production of renewable energy. Apart from food products (e.g.: fruits and vegetables) whose balance remains in surplus, there is a negative balance for other items, which shows that Spain is loosing its competitiveness.
The main trade partners are the countries of the European Union, France being the first destination of Spanish exports (19.2% in 2009). France imports Spanish food products, cars, chemical and textile products. Spain also has good trade relations with the Maghreb countries.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 328,696 | 389,301 | 420,804 | 293,218 | 312,228 |
| Exports of Goods (million USD) | 213,717 | 253,297 | 281,493 | 227,338 | 244,527 |
| Imports of Services (million USD) | 77,860 | 95,688 | 104,036 | 86,679 | 85,500 |
| Exports of Services (million USD) | 105,501 | 126,747 | 141,750 | 121,517 | 120,846 |
| Imports of Goods and Services (Annual % Change) | 10.2 | 8.0 | -5.3 | -17.8 | - |
| Exports of Goods and Services (Annual % Change) | 5.1 | 5.3 | - | - | - |
| Imports of Goods and Services (in % of GDP) | 32.7 | 33.6 | 32.2 | 25.5 | - |
| Exports of Goods and Services (in % of GDP) | 26.3 | 26.9 | 26.5 | 23.4 | - |
| Trade Balance (million USD) | -104,622 | -125,238 | -126,613 | -58,956 | -62,350 |
| Trade Balance (Including Service) (million USD) | -76,545 | -93,582 | -88,394 | -23,260 | -25,849 |
| Foreign Trade (in % of GDP) | 59.0 | 60.5 | 58.7 | 48.9 | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| France | 18.3% |
| Germany | 10.5% |
| Portugal | 8.9% |
| Italy | 8.8% |
| United Kingdom | 6.2% |
| See More Countries | 47.4% |
| Main Suppliers (% of Imports) |
2010 |
| Germany | 11.7% |
| France | 10.7% |
| China | 7.9% |
| Italy | 7.0% |
| United Kingdom | 4.5% |
| See More Countries | 58.1% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
The President of each Autonomous Community is from the majority party of the majority coalition winning elections of the Parliaments of the Regions which take place every 4 years. the President forms a government whose «ministers» are appointed under the title «consejeros» and seconded by a cabinet and director generals, etc. who are in charge of each Department heading the sectors for which the Autonomous Community has jurisdiction in substitution of the Spanish State (single administration).
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012