Spain Economy - 2006

Economy - overview:
The Spanish economy boomed from 1986 to 1990, averaging five percent 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 10.1%. Growth of 2.5% in 2003, 2.6% in 2004, and 3.4% in 2005 was satisfactory given the background of a faltering European economy. The socialist president, RODRIGUEZ ZAPATERO, has initiated economic and social reforms that are generally popular among the masses of people, but that are anathema to religious and other conservative elements. Adjusting to the monetary and other economic policies of an integrated Europe, reducing unemployment, and absorbing widespread social changes will pose challenges to Spain over the next few years.

GDP (purchasing power parity):
$1.017 trillion (2005 est.)

GDP (official exchange rate):
$1.021 trillion (2005 est.)

GDP - real growth rate:
3.4% (2005 est.)

GDP - per capita (PPP):
$25,200 (2005 est.)

GDP - composition by sector:
agriculture: 3.4%
industry: 28.7%
services: 67.9% (2005 est.)

Labor force:
20.67 million (2005 est.)

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

Unemployment rate:
10.1% (2005 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 25.2% (1990)

Distribution of family income - Gini index:
32.5 (1990)

Inflation rate (consumer prices):
3.4% (2005 est.)

Investment (gross fixed):
28.1% of GDP (2005 est.)

Budget:
revenues: $440.9 billion
expenditures: $448.4 billion; including capital expenditures of $12.8 billion (2005 est.)

Public debt:
48.5% of GDP (2005 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:
1.6% (2005 est.)

Electricity - production:
247.3 billion kWh (2003)

Electricity - consumption:
231.2 billion kWh (2003)

Electricity - exports:
7.5 billion kWh (2003)

Electricity - imports:
8.7 billion kWh (2003)

Oil - production:
24,540 bbl/day (2003 est.)

Oil - consumption:
1.544 million bbl/day (2003 est.)

Oil - exports:
135,100 bbl/day (2001)

Oil - imports:
1.582 million bbl/day (2001)

Oil - proved reserves:
10.5 million bbl (1 January 2002)

Natural gas - production:
216 million cu m (2003 est.)

Natural gas - consumption:
23.27 billion cu m (2003 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
17.26 billion cu m (2001 est.)

Natural gas - proved reserves:
2.662 billion cu m (1 January 2002)

Current account balance:
-$64.62 billion (2005 est.)

Exports:
$194.3 billion f.o.b. (2005 est.)

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

Exports - partners:
France 19.5%, Germany 11.7%, Portugal 9.8%, Italy 9.1%, UK 9.1% (2004)

Imports:
$271.8 billion f.o.b. (2005 est.)

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

Imports - partners:
Germany 16.7%, France 15.9%, Italy 9.1%, UK 6.4%, Netherlands 5% (2004)

Reserves of foreign exchange and gold:
$18.5 billion (2005 est.)

Debt - external:
$1.249 trillion (30 June 2005 est.)

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

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 - 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001)