Spain's accession to the European Community--now European Union (EU)--in January 1986 required the country to open its economy, modernize its industrial base, improve infrastructure, and revise economic legislation to conform to EU guidelines. In doing so, Spain increased GDP growth, reduced the public debt to GDP ratio, reduced unemployment from 23% to 15% in 3 years, and reduced inflation to under 3%. The fundamental challenges remaining for Spain include reducing the public sector deficit, decreasing unemployment further, reforming labor laws and investment regulations, lowering inflation, and raising per capita GDP.
Following peak growth years in the late 1980s, the Spanish economy entered into recession in mid-1992. The economy recovered during first Aznar administration (1996-2000), driven by a return of consumer confidence and increased private consumption, although growth has slowed in recent years. Unemployment remains a problem at 11.3% (2002 est.), but this still represents a significant improvement from previous levels. Devaluations of the peseta during the 1990s made Spanish exports more competitive, but the strength of the euro since its adoption has raised recent concerns that Spanish exports are being priced out of the range of foreign buyers. However, this has been offset by the facilitation of trade among the euro nations.
GDP: purchasing power parity - $677.5 billion (1999 est.)
GDP - real growth rate: 3.6% (1999 est.)
GDP - per capita: purchasing power parity - $17,300 (1999 est.)
GDP - composition by sector:
agriculture:
3.2%
industry:
33.6%
services:
63.2% (1998 est.)
Population below poverty line: NA%
Household income or consumption by percentage share:
lowest 10%:
2.8%
highest 10%:
25.2% (1990)
Inflation rate (consumer prices): 2.3% (1999 est.)
Labor force: 16.2 million (1997 est.)
Labor force - by occupation: services 64%, manufacturing, mining, and construction 28%, agriculture 8% (1997 est.)
Unemployment rate: 16% (1999 est.)
Budget:
revenues:
$115 billion
expenditures:
$125 billion, including capital expenditures of $NA (1998 est.)
Industries: textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism
Industrial production growth rate: 2.7% (1999 est.)
Electricity - production: 179.468 billion kWh (1999)
Electricity - production by source:
fossil fuel:
48.23%
hydro:
19.16%
nuclear:
31.23%
other:
1.38% (1998)
Electricity - consumption: 170.306 billion kWh (1998)
Electricity - exports: 5.6 billion kWh (1998)
Electricity - imports: 9 billion kWh (1998)
Agriculture - products: grain, vegetables, olives, wine grapes, sugar beets, citrus; beef, pork, poultry, dairy products; fish
Exports: $112.3 billion (f.o.b., 1999 est.)
Exports - commodities: machinery, motor vehicles; foodstuffs, other consumer goods
Exports - partners: EU 72% (France 20%, Germany 14%, Italy 9%, Portugal 9%, UK 8%), Latin America 7%, US 4% (1998)
Imports: $137.5 billion (f.o.b., 1999 est.)
Imports - commodities: machinery and equipment, fuels, chemicals, semifinished goods; foodstuffs, consumer goods (1997)
Imports - partners: EU 67% (France 18%, Germany 15%, Italy 10%, UK 8%, Benelux 8%), US 6%, OPEC 5%, Japan 3%, Latin America 4% (1998)
Debt - external: $90 billion (1993 est.)
Economic aid - donor: ODA, $1.3 billion (1995)
Currency: 1 euro (€) = 100 cents (before 2002, 1 peseta (Pta) = 100 céntimos)
Exchange rates:
euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); pesetas (Ptas) per US$1 - 143.39 (January 1999), 149.40 (1998), 146.41 (1997), 126.66 (1996), 124.69 (1995)
note:
on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 166.386 pesetas per euro; the euro will replace the local currency in consenting countries for all transactions in 2002
Fiscal year: calendar year