Spain Economy 2007

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 80% that of the four leading West European economies. The center-right government of former President 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 8.1%. Growth averaging 3% annually during 2003-06 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 strong 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):
$1.109 trillion (2006 est.)

GDP (official exchange rate):
$1.084 trillion (2006 est.)

GDP - real growth rate:
3.9% (2006 est.)

GDP - per capita (PPP):
$27,400 (2006 est.)

GDP - composition by sector:
agriculture: 3.9%
industry: 29.7%
services: 66.4% (2006 est.)

Labor force:
21.58 million (2006 est.)

Labor force - by occupation:
agriculture: 5.3%
industry: 30.1%
services: 64.6% (2004 est.)

Unemployment rate:
8.1% (2006 est.)

Population below poverty line:
19.8% (2005)

Household income or consumption by percentage share:
lowest 10%: 2.6%
highest 10%: 26.6% (2000)

Distribution of family income - Gini index:
34.7 (2000)

Inflation rate (consumer prices):
3.5% (2006 est.)

Investment (gross fixed):
30.4% of GDP (2006 est.)

Budget:
revenues: $495.8 billion
expenditures: $473.6 billion (2006 est.)

Public debt:
39.9% of GDP (2006 est.)

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

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:
0.6% (2006 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:
31,250 bbl/day (2004 est.)

Oil - consumption:
1.573 million bbl/day (2004 est.)

Oil - exports:
175,200 bbl/day (2004)

Oil - imports:
1.714 million bbl/day (2004)

Oil - proved reserves:
157.6 million bbl (1 January 2006)

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:
$-106.4 billion (2006 est.)

Exports:
$216.5 billion f.o.b. (2006 est.)

Exports - commodities:
machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods

Exports - partners:
France 18.9%, Germany 11%, Portugal 8.9%, Italy 8.6%, UK 7.8%, US 4.5% (2006)

Imports:
$317.1 billion f.o.b. (2006 est.)

Imports - commodities:
machinery and equipment, fuels, chemicals, semifinished goods, foodstuffs, consumer goods, measuring and medical control instruments

Imports - partners:
Germany 14.7%, France 13.2%, Italy 8.1%, UK 5%, Netherlands 4.8%, China 4.8% (2006)

Economic aid - donor:
ODA, $1.33 billion (1999)

Reserves of foreign exchange and gold:
$19.34 billion (2006 est.)

Debt - external:
$996.7 billion (2006 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)

Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by the financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions with the member countries

Exchange rates:
euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)