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Spain Economy Profile 2018

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Economy - overviewAfter experiencing a prolonged recession in the wake of the global financial crisis that began in 2008, in 2017 Spain marked the fourth full year of positive economic growth in ten years, largely due to increased private consumption. At the onset of the financial crisis, Spain's GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and continued contracting through most of 2013. In that year, the government successfully shored up struggling banks - exposed to the collapse of Spain's depressed real estate and construction sectors - and in January 2014 completed an EU-funded restructuring and recapitalization program for its financial sector.

Until 2014, credit contraction in the private sector, fiscal austerity, and high unemployment weighed on domestic consumption and investment. The unemployment rate rose from a low of about 8% in 2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 17% in 2017. High unemployment has strained Spain's public finances, as spending on social benefits increased while tax revenues fell. Spain’s budget deficit peaked at 11.4% of GDP in 2010, but Spain gradually reduced the deficit to about 3.3% of GDP in 2017. Public debt has increased substantially – from 60.1% of GDP in 2010 to nearly 96.7% in 2017.

Exports were resilient throughout the economic downturn and helped to bring Spain's current account into surplus in 2013 for the first time since 1986, where it remained through 2016. Rising labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have helped to improve foreign investor interest in the economy and positive FDI flows have been restored.

Political gridlock after the national elections in December 2015 and June 2016 and ensuing government formation process constrained the caretaker government’s ability to implement needed labor, pension, health care, tax, and education reforms— in 2016. The European Commission criticized Spain’s 2016 budget for easing austerity measures and for its alleged overly optimistic growth and deficit projections. Spain’s borrowing costs are dramatically lower since their peak in mid-2012, and with the recent uptick in economic activity, inflation has reappeared, at 2% per year.
GDP (purchasing power parity)$1.769 trillion (2017 est.)
$1.716 trillion (2016 est.)
$1.662 trillion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$1.307 trillion (2016 est.)
GDP - real growth rate3.1% (2017 est.)
3.2% (2016 est.)
3.2% (2015 est.)
GDP - per capita (PPP)$38,200 (2017 est.)
$37,000 (2016 est.)
$35,800 (2015 est.)
note: data are in 2017 dollars
Gross national saving22.5% of GDP (2017 est.)
22.3% of GDP (2016 est.)
21.4% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 57.3%
government consumption: 18.5%
investment in fixed capital: 19.8%
investment in inventories: 0.4%
exports of goods and services: 34.2%
imports of goods and services: -30.2% (2017 est.)
GDP - composition by sectoragriculture: 2.6%
industry: 23.2%
services: 74.2% (2017 est.)
Population below poverty line21.1% (2012 est.)
Labor force22.75 million (2017 est.)
Labor force - by occupationagriculture: 4.2%
industry: 24%
services: 71.7% (2009)
Unemployment rate17.1% (2017 est.)
19.6% (2016 est.)
Unemployment, youth ages 15-24total: 44.4%
male: 44%
female: 44.9% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 2.5%
highest 10%: 24% (2011)
Distribution of family income - Gini index35.9 (2012)
32 (2005)
Budgetrevenues: $492.4 billion
expenditures: $535.9 billion (2017 est.)
Taxes and other revenues37.7% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-3.3% of GDP (2017 est.)
Public debt96.7% of GDP (2017 est.)
99.4% of GDP (2016 est.)
Inflation rate (consumer prices)2% (2017 est.)
-0.2% (2016 est.)
Central bank discount rate0.05% (10 September 2014)
0.25% (13 November 2013)
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 rate2.2% (31 December 2017 est.)
2.19% (31 December 2016 est.)
Stock of narrow money$1.082 trillion (31 December 2017 est.)
$841.6 billion (31 December 2016 est.)
note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money$1.337 trillion (31 December 2017 est.)
$1.189 trillion (31 December 2016 est.)
Stock of domestic credit$2.455 trillion (31 December 2017 est.)
$2.21 trillion (31 December 2016 est.)
Market value of publicly traded shares$787.2 billion (31 December 2015 est.)
$992.9 billion (31 December 2014 est.)
$1.117 trillion (31 December 2013 est.)
Agriculture - productsgrain, vegetables, olives, wine grapes, sugar beets, citrus; beef, pork, poultry, dairy products; fish
Industriestextiles 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 rate2.6% (2017 est.)
Current Account Balance$24.3 billion (2017 est.)
$23.76 billion (2016 est.)
Exports$301.5 billion (2017 est.)
$280.5 billion (2016 est.)
Exports - commoditiesmachinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods
Exports - partnersFrance 15.2%, Germany 11.4%, Italy 7.8%, UK 7.6%, Portugal 7%, US 4.4% (2016)
Imports$333.4 billion (2017 est.)
$300.3 billion (2016 est.)
Imports - commoditiesmachinery and equipment, fuels, chemicals, semi-finished goods, foodstuffs, consumer goods, measuring and medical control instruments
Imports - partnersGermany 14.7%, France 12%, China 7.1%, Italy 6.7%, Netherlands 5.2%, UK 4.4% (2016)
Reserves of foreign exchange and gold$63.14 billion (31 December 2016 est.)
$63.14 billion (31 December 2016 est.)
Debt - external$2.094 trillion (31 March 2016 est.)
$1.963 trillion (31 March 2015 est.)
Stock of direct foreign investment - at home$772.1 billion (31 December 2017 est.)
$739.7 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$752.4 billion (31 December 2017 est.)
$696.9 billion (31 December 2016 est.)
Exchange rateseuros (EUR) per US dollar -
0.906 (2017 est.)
0.9214 (2016 est.)
0.9214 (2015 est.)
0.7525 (2014 est.)
0.7634 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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