ECONOMY
Spain's accession to the European Community--now European Union (EU)--in January 1986 required the country to open its economy to trade and investment, modernize its industrial base, improve infrastructure, and revise economic legislation to conform to EU guidelines. In doing so, Spain increased gross domestic product (GDP) growth, reduced the public debt to GDP ratio, reduced unemployment from 23% in 1986 to 9.6% in first quarter 2008, and reduced inflation to under 3%, although it had risen to 4.7% as of May 2008. The fundamental challenges remaining for Spain include decreasing unemployment further, reforming labor laws 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 the 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 9.6% (2008, first quarter), 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.
GDP (2007): $1.439 trillion (seventh-largest Organization for Economic Cooperation and Development--OECD--economy).
Annual growth rate (2007 est.): 3.8%.
Per capita GDP (2007 est.): $31,831.
Natural resources: Coal, lignite, iron ore, uranium, mercury, pyrites, fluorspar, gypsum, zinc, lead, tungsten, copper, kaolin, hydroelectric power.
Agriculture and fisheries (2.6% of GDP, 2007 est.): Products--grains, vegetables, citrus and deciduous fruits, wine, olives and olive oil, sunflowers, livestock.
Industry (13.51% of GDP, 2007 est.): Types--processed foods, textiles, footwear, petrochemicals, steel, automobiles, consumer goods, electronics.
Trade (2007): Exports--$248.7 billion: automobiles, fruits, minerals, metals, clothing, footwear, textiles. Major markets--EU 70.1%, U.S. 4.17%. Imports--$289.8 billion: petroleum, oilseeds, aircraft, grains, chemicals, machinery, transportation equipment, fish, consumer goods. Major sources--EU 59.1%, U.S. 3.54%.
Average exchange rate (2007): 0.731 euros=U.S.$1.
