Spain Economy Profile 2008

Economy - overview

The Spanish economy boomed from 1986 to 1990 averaging 5% annual growth. After a European-wide recession in the early 1990s, the Spanish economy resumed moderate growth starting in 1994. Spain's mixed capitalist economy supports a GDP that on a per capita basis is equal to that of the leading West European economies. The center-right government of former President Jose Maria AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 January 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 7.6%. Growth averaging more than 3% annually during 2003-07 was satisfactory given the background of a faltering European economy. The Socialist president, RODRIGUEZ ZAPATERO, has made mixed progress in carrying out key structural reforms, which need to be accelerated and deepened to sustain Spain's economic growth. Despite the economy's relative solid footing significant downside risks remain including Spain's continued loss of competitiveness, the potential for a housing market collapse, the country's changing demographic profile, and a decline in EU structural funds.

GDP (purchasing power parity)

$1.362 trillion (2007 est.)

GDP (official exchange rate)

$1.415 trillion (2007 est.)

GDP - real growth rate

3.8% (2007 est.)

GDP - per capita (PPP)

$33,700 (2007 est.)

GDP - composition by sector

agriculture: 3.8%
industry: 29.4%
services: 66.8% (2007 est.)

Population below poverty line

19.8% (2005)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

2.4% (2007 est.)

Investment (gross fixed)

30.8% of GDP (2007 est.)

Labor force

22.01 million (2007 est.)

Labor force - by occupation

agriculture: 5.3%
industry: 30.1%
services: 64.6% (2004 est.)

Unemployment rate

7.6% (2007 est.)

Distribution of family income - Gini index

32 (2005)

Budget

revenues: $571.1 billion
expenditures: $544.9 billion (2007 est.)

Public debt

35.7% of GDP (2007 est.)

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

3% (2007 est.)

Electricity - production

270.3 billion kWh (2005)

Electricity - consumption

243 billion kWh (2005)

Electricity - exports

11.56 billion kWh (2005)

Electricity - imports

10.21 billion kWh (2005)

Oil - production

29,350 bbl/day (2005 est.)

Oil - consumption

1.6 million bbl/day (2005 est.)

Oil - imports

1.714 million bbl/day (2004)

Oil - exports

175,200 bbl/day (2004)

Oil - proved reserves

157.6 million bbl (1 January 2006 est.)

Natural gas - production

151.5 million cu m (2005 est.)

Natural gas - consumption

30.58 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

31.76 billion cu m (2005)

Natural gas - proved reserves

2.444 billion cu m (1 January 2006 est.)

Current Account Balance

-$126.3 billion (2007 est.)

Agriculture - products

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

Exports

$248.3 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

France 18.8%, Germany 11%, Portugal 9%, Italy 8.6%, UK 8%, US 4.4% (2006)

Imports

$359.1 billion f.o.b. (2007 est.)

Imports - commodities

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

Imports - partners

Germany 14.8%, France 13.4%, Italy 8.3%, UK 5.2%, Netherlands 4.9%, China 4.6% (2006)

Reserves of foreign exchange and gold

$16.32 billion (31 December 2007 est.)

Debt - external

$2.047 trillion (30 June 2007 est.)

Stock of direct foreign investment - at home

$439.4 billion (2006 est.)

Stock of direct foreign investment - abroad

$509.2 billion (2006 est.)

Market value of publicly traded shares

$960 billion (2005)

Economic aid - donor

ODA, $3.814 billion (2006)

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)

Fiscal year

calendar year