After undergoing a period of deep recession, Spain returned to positive growth in Q3 of 2013. However, the average growth numbers for the year were negative (-1.3%) and only sluggish growth is expected for 2014 (0.7% of the GDP). Recovery will be slow due to the high level of unemployment and tightened credit conditions which limit investment and consumption.
In 2013, the government continued introducing reforms to rebalance the state accounts and it was able to soften the austerity measures thanks to the EU's losening of its requirements in terms of deficit reduction (the goal was increased from 4.5% to 6.5% and Spain was given additional two years to reduce its budget under 3% by 2016). The country experienced an increase in competitiveness encouraged by the decreasing cost of workforce and investors became more confident, which resulted in lower interest rates on the sovereign debt. In late 2013, the government announced that it was closing down its assistance plan for banks since the last visit of the IMF inspectors came to the conclusion that the restructuring programme of the bank sector had had good results. To support this nascent economic recovery a number of reforms are due to be adopted, including and especially, of the pension system (abolishing indexation on inflation, revision of retirement age according to life expectancy), enterpreneuriship (standardisation of business creation rules and trade licensing, facilitating bureaucratic procedures and access to funding) and public spending (administrative reform). The debt has risen to 94% of the GDP and should reach nearly 99% of the GDP in 2014.
Spanish unemployment rate has fallen due to the decrease in active population and the creation of new temporary jobs, but still remains very high (25%). The crisis has had a negative impace on the living conditions generally.
|Main Indicators||2011||2012||2013||2014||2015 (e)|
|GDP (billions USD)||1,455.87||1,323.21||1,358.69||1,400.48||1,421.71|
|GDP (Constant Prices, Annual % Change)||0.1||-1.6||-1.2e||1.3e||1.7|
|GDP per Capita (USD)||31,151||28,294||29e||30,113e||30,639|
|General Government Balance (in % of GDP)||-7.3||-4.9||-3.8e||-3.4e||-2.9|
|General Government Gross Debt (in % of GDP)||70.5||85.9||93.9e||98.6||101.1|
|Inflation Rate (%)||3.1||2.4||1.5e||-0.0||0.6|
|Unemployment Rate (% of the Labor Force)||21.4||24.8||26.1||24.6||23.5|
|Current Account (billions USD)||-54.22||-15.97||10.58||1.40e||5.21|
|Current Account (in % of GDP)||-3.7||-1.2||0.8||0.1||0.4|
Source: IMF - World Economic Outlook Database , 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.
Tourism represents Spain's largest source of income and the country has become the number two tourist destination in the world, thereby stimulating export of goods and services. The tertiary sector contributes to two thirds of the GDP.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||4.4||20.7||74.9|
|Value Added (in % of GDP)||2.8||23.3||73.9|
|Value Added (Annual % Change)||15.6||-3.6||-1.1|
Source: World Bank - Last Available Data.
|Euro (EUR) - Average Annual Exchange Rate For 1 USD||0.72||0.76||0.72||0.78||0.76|
Source: CIA - The world factbook - Last Available Data.
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
Trade represents nearly 60% of the Spanish GDP (WTO, average 2010-2012). In 2013, Spanish imports bottomed out and exports recovered (an increase of around 6% compared to 2012), driven by equipment goods, the automobile industry and tourism, the decrease in costs and the diversification of trading partners. Spain has reduced its trade deficit and this trend should continue in 2014.
The main trade partners are the countries of the European Union, France being the first destination of Spanish exports. France imports Spanish food products, cars, chemical and textile products. Spain also has good trade relations with the Maghreb countries.
|Foreign Trade Indicators||2009||2010||2011||2012||2013|
|Imports of Goods (million USD)||293,218||327,016||376,606||337,338||338,843|
|Exports of Goods (million USD)||227,338||254,418||306,551||293,939||315,518|
|Imports of Services (million USD)||86,679||87,187||94,746||89,922||91,126|
|Exports of Services (million USD)||121,517||123,823||142,328||136,963||144,452|
|Imports of Goods and Services (Annual % Change)||-18.3||6.9||-0.8||-6.3||-0.5|
|Exports of Goods and Services (Annual % Change)||-11.0||9.4||7.4||1.2||4.3|
|Imports of Goods and Services (in % of GDP)||23.8||26.8||29.0||28.8||28.1|
|Exports of Goods and Services (in % of GDP)||22.7||25.5||28.8||30.3||31.6|
|Trade Balance (million USD)||-57,880||-63,278||-59,276||-33,496||-15,055|
|Trade Balance (Including Service) (million USD)||-23,142||-26,961||-11,036||12,227||38,713|
|Foreign Trade (in % of GDP)||46.5||52.3||57.8||59.1||59.7|
Source: WTO - World Trade Organization ; World Bank , Last Available Data
(% of Exports)
|See More Countries||52.7%|
(% of Imports)
|See More Countries||61.2%|
Source: Comtrade, Last Available Data
|- bn USD of products exported in 2013|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||9.4%|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||5.3%|
|Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s.||3.5%|
|Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses incl. those in the form of transdermal administration or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006)||3.1%|
|Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab||1.7%|
|See More Products||77.0%|
|- bn USD of products imported in 2013|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude||13.6%|
|Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s.||5.2%|
|Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons||4.3%|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||4.2%|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||3.4%|
|See More Products||69.3%|
Source: Comtrade, Last Available Data
|- bn USD of services exported in 2011|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||21.92%|
|Other business servicesOther business services||8.28%|
|Services between related...Services between related enterprises, n.i.e.||5.49%|
|Architectural, engineering,...Architectural, engineering, and other technical services||2.89%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||2.35%|
|Advertising, market research,...Advertising, market research, and public opinion polling||1.96%|
|Research and developmentResearch and development||0.91%|
|Agricultural, mining, and...Agricultural, mining, and on-site processing services||0.05%|
|Merchanting and other trade-related...Merchanting and other trade-related services||1.36%|
|Other trade-related servicesOther trade-related services||0.80%|
|Operational leasing servicesOperational leasing services||0.90%|
|Air transportAir transport||9.37%|
|Road transportRoad transport||5.14%|
|Sea transportSea transport||2.13%|
|Rail transportRail transport||0.06%|
|Construction abroadConstruction abroad||2.78%|
|Construction in the compiling...Construction in the compiling economy||0.21%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.86%|
|Audiovisual and related servicesAudiovisual and related services||0.67%|
|Other direct insuranceOther direct insurance||0.13%|
|Auxiliary servicesAuxiliary services||0.05%|
|- bn USD of services imported in 2011|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||33.54%|
|Other business servicesOther business services||18.78%|
|Services between related...Services between related enterprises, n.i.e.||8.03%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||2.05%|
|Advertising, market research,...Advertising, market research, and public opinion polling||2.00%|
|Architectural, engineering,...Architectural, engineering, and other technical services||1.91%|
|Research and developmentResearch and development||0.70%|
|Merchanting and other trade-related...Merchanting and other trade-related services||1.53%|
|Other trade-related servicesOther trade-related services||1.53%|
|Operational leasing servicesOperational leasing services||0.54%|
|Road transportRoad transport||9.74%|
|Air transportAir transport||9.61%|
|Sea transportSea transport||5.51%|
|Computer servicesComputer services||2.55%|
|Information servicesInformation services||0.73%|
|Telecommunications servicesTelecommunications services||2.70%|
|Postal and courier servicesPostal and courier services||0.29%|
|Audiovisual and related servicesAudiovisual and related services||1.30%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.94%|
|Freight insuranceFreight insurance||0.91%|
|Other direct insuranceOther direct insurance||0.16%|
|Auxiliary servicesAuxiliary services||0.09%|
|Construction in the compiling...Construction in the compiling economy||0.86%|
|Construction abroadConstruction abroad||0.74%|
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).
The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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