Property frontiers

Spain:
Country Economic Overview

An overview of the Spanish Economy

Sample

An Overview of the Economy

The Spanish economy boomed between 1986 and 1990, averaging 5% annual growth. Following the Europe-wide recession in 1994, this growth dimished and then began to recover, increasing by 2.5%, 2.6% and 3.3% in 2003, 2004 and 2005 respecitvely. By 2006 economic growth was on the rise at 6.1% although this dropped to 4% in the first quarter of 2007. Despite the cloud of doom that currently hangs over Spain's property market, growth of a steady 5%–7% is predicted over the next 10 years.

The socialist president, Rodriguez Zapatero, has initiated economic and social reforms, and the country is working towards reducing unemployment (which, although higher than other countries is decreasing and at the end of 2005 was 8.7%, the lowest end of year rate in 25 years). Schemes to help the country adjust to the monetary and economic policies of an integrated Europe are currently being implemented.

statistics
GDP (PPP) (IMF) (US$Billions)	1.4
GDP (PPP) (CIA) (US$Billions)	1.4
GDP Growth (IMF) (%)	3.8%
GDP Growth (CIA) (%)	3.8%
GDP Per Capita (PPP) (IMF) (US$)	30,120
GDP Per Capita (PPP) (CIA) (US$)	30,100
GDP by Sector (%)	Agriculture: 3.5% Services: 66.6% Industry: 29.8%
Inflation (%)	2.8%
Population Below the Poverty Line (%)	19.8%
Labour Force (Millions)	22.19
Labour Force by Occupation (%)	Agriculture: 5.3% Services: 64.6% Industry: 30.1%
Unemployment (%)	8.3%
Main Industries	Textiles and apparel, food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay, pharmaceuticals, medical equipment.

^{Source: CIA World Factbook, IMF}

GDP

GDP growth rate was 3.3% in 2004 and 3.6% in 2005. After an estimated GDP growth of 3.4% in 2006, IMF forecasts the economy to slow down gradually in 2007.

economic indicators	2003	2004	2005	2006	2007
GDP (US$Billions)	885.4	1,045.7	1,131.7	1,231.7	1,438.9
GDP Growth (%)	3%	3.3%	3.6%	3.9%	3.8%
GDP Per Capita (US$)	21,078	24,494	26,077	27,951	32,067
GDP Per Capita (PPP) (US$)	24,957	26,015	27,270	28,772	30,120
Inflation (%)	3.1%	3.1%	3.4%	3.6%	2.8%
Unemployment (%)	11.5%	11%	9.2%	8.5%	8.3%
Mobile Phone Users	8,394,000	37,506,700	37,506,700	41,328,000	46,152,000
Internet Users	7,890,000	9,789,000	9,789,000	18,578,000	19,204,000

^{Source: CIA World Factbook, IMF}

Major Exports & Imports

The share of foreign trade in Spain's GDP is nearly 55% although fears are arising that the country's exports are becoming very expensive due to the thriving Euro currency. Spain's top three export partners are: France, Germany and Portugal. Its top three import partners are: Germany, France and Italy.