Spain Economy Profile 2009

Economy - overview

The Spanish economy grew every year from 1994 through 2008 before entering a recession that started in the third quarter of 2008. Spain's mixed capitalist economy supports a GDP that on a per capita basis is approaching that of the largest West European economies. The Socialist president, Jose Luis Rodriguez ZAPATERO, in office since 2004, has made mixed progress in carrying out key structural reforms. The economy was greatly affected, especially after Zapatero's second term began in April 2008, by the bursting of the housing bubble and construction boom that had fueled much of the economic growth between 2001 and 2007. The global financial crisis exacerbated the economic downturn. GDP growth in 2008 was 1.2%, well below the 3% or higher growth the country enjoyed from 1997 through 2007. The Spanish banking system is considered solid, thanks in part to conservative oversight by the European Central Bank, and government intervention to rescue banks on the scale seen elsewhere in Europe in 2008 was not necessary. After considerable success since the mid-1990s in reducing unemployment to a 2007 low of 8%, Spain suffered a major spike in unemployment in the last few months of 2008, finishing the year with an unemployment rate over 13%.

GDP (purchasing power parity)

$1.403 trillion (2008 est.)
$1.386 trillion (2007 est.)
$1.337 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.612 trillion (2008 est.)

GDP - real growth rate

1.2% (2008 est.)
3.7% (2007 est.)
3.9% (2006 est.)

GDP - per capita (PPP)

$34,700 (2008 est.)
$34,300 (2007 est.)
$33,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.4%
industry: 29%
services: 67.6% (2008 est.)

Population below poverty line

19.8% (2005)

Labor force

22.85 million (2008 est.)

Labor force - by occupation

agriculture: 4%
industry: 26.4%
services: 69.5% (2008 est.)

Unemployment rate

13.9% (2008 est.)
8.3% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.6%
highest 10%: 26.6% (2000)

Distribution of family income - Gini index

32 (2005)
32.5 (1990)

Investment (gross fixed)

29.4% of GDP (2008 est.)

Budget

revenues: $598.1 billion
expenditures: $659.1 billion (2008 est.)

Public debt

40.3% of GDP (2008 est.)
53.2% of GDP (2004 est.)

Inflation rate (consumer prices)

4.1% (2008 est.)
2.8% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Commercial bank prime lending rate

9.54% (31 December 2008)

Stock of money

$NA

note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of quasi money

$NA

Stock of domestic credit

$3.196 trillion (31 December 2008)
$2.976 trillion (31 December 2007)

Industries

textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay and refractory products, footwear, pharmaceuticals, medical equipment

Industrial production growth rate

-2.3% (2008 est.)

Electricity - production

294.3 billion kWh (2008 est.)

Electricity - production by source

fossil fuel: 50.4%
hydro: 18.2%
nuclear: 27.2%
other: 4.1% (2001)

Electricity - consumption

276.1 billion kWh (2008 est.)

Electricity - exports

14.52 billion kWh (2007 est.)

Electricity - imports

8.773 billion kWh (2007 est.)

Oil - production

29,000 bbl/day (2007 est.)

Oil - consumption

1.611 million bbl/day (2007 est.)

Oil - imports

1.777 million bbl/day (2005)

Oil - exports

181,800 bbl/day (2005)

Oil - proved reserves

150 million bbl (1 January 2008 est.)

Natural gas - production

88 million cu m (2007 est.)

Natural gas - consumption

34.43 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

34.47 billion cu m (2007 est.)

Natural gas - proved reserves

2.548 billion cu m (1 January 2008 est.)

Current Account Balance

-$131.8 billion (2008 est.)
-$145.4 billion (2007 est.)

Agriculture - products

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

Exports

$285.4 billion (2008 est.)
$256.7 billion (2007 est.)

Exports - commodities

machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods

Exports - partners

France 18.4%, Germany 10.6%, Portugal 8.7%, Italy 8%, UK 6.7%, US 4.2% (2008)

Imports

$414.5 billion (2008 est.)
$380.2 billion (2007 est.)

Imports - commodities

machinery and equipment, fuels, chemicals, semifinished goods, foodstuffs, consumer goods, measuring and medical control instruments

Imports - partners

Germany 14.5%, France 11.1%, Italy 7.4%, China 6.3%, UK 4.6%, Netherlands 4.4% (2008)

Reserves of foreign exchange and gold

$20.25 billion (31 December 2008 est.)
$19.05 billion (31 December 2007 est.)

Debt - external

$2.313 trillion (31 December 2008)
$2.299 trillion (31 December 2007)

Stock of direct foreign investment - at home

$636.5 billion (31 December 2008 est.)
$570.7 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$765 billion (31 December 2008 est.)
$687.4 billion (31 December 2007 est.)

Market value of publicly traded shares

$1.132 trillion (31 December 2008)
$1.8 trillion (31 December 2007)
$1.323 trillion (31 December 2006)

Economic aid - donor

ODA, $3.814 billion (2006)

Currency (code)

EUR

Currency (code)

euro (EUR)

Exchange rates

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year

calendar year