Spain Economy - 2021

GEOGRAPHICAL NAMES 

Economic overview

After a prolonged recession that began in 2008 in the wake of the global financial crisis, Spain marked the fourth full year of positive economic growth in 2017, with economic activity surpassing its pre-crisis peak, largely because of increased private consumption. The financial crisis of 2008 broke 16 consecutive years of economic growth for Spain, leading to an economic contraction that lasted until late 2013. In that year, the government successfully shored up its struggling banking sector - heavily exposed to the collapse of Spain’s real estate boom - with the help of an EU-funded restructuring and recapitalization program.

Until 2014, contraction in bank lending, fiscal austerity, and high unemployment constrained 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 16.4% in 2017. High unemployment 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.

Strong export growth helped bring Spain's current account into surplus in 2013 for the first time since 1986 and sustain Spain’s economic growth. Increasing labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have improved Spain’s export competitiveness and generated foreign investor interest in the economy, restoring FDI flows.

In 2017, the Spanish Government’s minority status constrained its ability to implement controversial labor, pension, health care, tax, and education reforms. The European Commission expects the government to meet its 2017 budget deficit target and anticipates that expected economic growth in 2018 will help the government meet its deficit target. Spain’s borrowing costs are dramatically lower since their peak in mid-2012, and increased economic activity has generated a modest level of inflation, at 2% in 2017.

Real GDP growth rate

1.95% (2019 est.)

2.43% (2018 est.)

2.97% (2017 est.)

Inflation rate (consumer prices)

0.7% (2019 est.)

1.6% (2018 est.)

1.9% (2017 est.)

Credit ratings

Fitch rating: A- (2018)

Moody's rating: Baa1 (2018)

Standard & Poors rating: A (2019)

Real GDP (purchasing power parity)

$1,925,576,000,000 (2019 est.)

$1,888,743,000,000 (2018 est.)

$1,843,934,000,000 (2017 est.)

note: data are in 2010 dollars

GDP (official exchange rate)

$1,393,351,000,000 (2019 est.)

Real GDP per capita

$40,903 (2019 est.)

$40,360 (2018 est.)

$39,575 (2017 est.)

note: data are in 2010 dollars

Gross national saving

22.9% of GDP (2019 est.)

22.4% of GDP (2018 est.)

22.2% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 2.6% (2017 est.)

industry: 23.2% (2017 est.)

services: 74.2% (2017 est.)

GDP - composition, by end use

household consumption: 57.7% (2017 est.)

government consumption: 18.5% (2017 est.)

investment in fixed capital: 20.6% (2017 est.)

investment in inventories: 0.6% (2017 est.)

exports of goods and services: 34.1% (2017 est.)

imports of goods and services: -31.4% (2017 est.)

Ease of Doing Business Index scores

Overall score: 77.9 (2020)

Starting a Business score: 86.9 (2020)

Trading score: 100 (2020)

Enforcement score: 70.9 (2020)

Agricultural products

barley, milk, wheat, olives, grapes, tomatoes, pork, maize, oranges, sugar beet

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

4% (2017 est.)

Labor force

19.057 million (2020 est.)

Labor force - by occupation

agriculture: 4.2%

industry: 24%

services: 71.7% (2009)

Unemployment rate

14.13% (2019 est.)

15.25% (2018 est.)

Population below poverty line

20.7% (2018 est.)

Gini Index coefficient - distribution of family income

34.7 (2017 est.)

32 (2005)

Household income or consumption by percentage share

lowest 10%: 2.5%

highest 10%: 24% (2011)

Budget

revenues: 498.1 billion (2017 est.)

expenditures: 539 billion (2017 est.)

Taxes and other revenues

37.9% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-3.1% (of GDP) (2017 est.)

Public debt

98.4% of GDP (2017 est.)

99% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

$29.603 billion (2019 est.)

$27.206 billion (2018 est.)

Exports

$533.771 billion (2019 est.)

$521.855 billion (2018 est.)

$510.327 billion (2017 est.)

Exports - partners

France 15%, Germany 11%, Portugal 8%, Italy 8%, United Kingdom 7%, United States 5% (2019)

Exports - commodities

cars and vehicle parts, refined petroleum, packaged medicines, delivery trucks, clothing and apparel (2019)

Imports

$463.145 billion (2019 est.)

$459.742 billion (2018 est.)

$441.197 billion (2017 est.)

Imports - partners

Germany 13%, France 11%, China 8%, Italy 7% (2019)

Imports - commodities

crude petroleum, cars and vehicle parts, packaged medicines, natural gas, refined petroleum (2019)

Reserves of foreign exchange and gold

$69.41 billion (31 December 2017 est.)

$63.14 billion (31 December 2016 est.)

Debt - external

$2,338,853,000,000 (2019 est.)

$2,366,534,000,000 (2018 est.)

Exchange rates

euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.7525 (2014 est.)

0.7634 (2013 est.)

NOTE: The information regarding Spain on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Spain 2021 information contained here. All suggestions for corrections of any errors about Spain 2021 should be addressed to the CIA or the source cited on each page.