1.- Economic Overview
Spain is an extremely dynamic country, and has traditionally
achieved very high economic growth rates, over and above the average
for other industrialized countries. According to Bank of Spain, growth
in 2003 was 2.4 percent, significantly above the EU, where average
GDP growth reached just 0.6 percent last year and GDP was around US$
743 billion in 2003.
Inflation in Spain has fallen steadily since the late
1980’s. The rate of inflation was kept under 5% for the first time
in 1993, and was further reduced in subsequent years to under 4% and
its current 2.6%. In February 2004, the inflation posted a year-on-year
rate of 2.1%.
The impressive reduction in Spain's long term interest
rates from 10% in 1993 to the current 4.2% is particularly noteworthy.
(Source: Bank of Spain).
A fine climate, abundant sportive and leisure facilities
and a rich cultural and social life make for high living conditions.
These have been widely recognized by the media; in a recent study
by The Economist the quality of life in Spain ranked third in the
world in terms of a set of social, political, cultural and economic
parameters.
The population in Spain is roughly 43 million people
in 2003. Approximately 20% is under 19 years of age; 63% is between
19 and 65 years old, and 17% is over 65. The population density is
83 inhabitants per square kilometer. The most populated cities in
Spain are Madrid, Barcelona, Valencia and Sevilla.
2.- Domestic Market
The rapid growth of the Spanish economy in recent
years has been driven by strong domestic demand in the context of
an increasingly open economy. Spain has a market of 43 million people
with an estimated per capita income of roughly 20,800 , plus an additional
injection of demand coming from the 82.6 million people who visit
the country in 2003.
3.- Foreign Trade
Since joining the European Union, Spain has experienced
sweeping changes in foreign trade. Exports have grown faster than
international commerce, increasing Spain’s share of world trade. At
the same time, Spain’s industrial sector has naturally looked to the
European market: exports and imports are for the most part with EU
member nations, following the development of competitive advantages,
as the result of the restructuring of Spain’s industries over the
last decade.
Distribution of Exports and Imports 2003 (Percentages
of total)
Exports |
|
Imports |
|
Vehicles |
23.6 |
Vehicles |
16.6 |
Mechanical |
8.3 |
Mechanical |
12.1 |
Electrical machinery and
equipment |
6.9 |
Electrical machinery and
equipment |
8.6 |
Plastics and plastic products |
3.4 |
Plastics and plastic products |
3.3 |
Fuel and mineral oils |
3.1 |
Fuel and mineral oils |
10.4 |
Fruits, non preserved |
3.3 |
Optical products and equipment |
2.4 |
Pharmaceutical products |
2.5 |
Pharmaceutical products |
3.3 |
Dried and fresh vegetables |
2.5 |
Fishery Products |
2.2 |
Organic chemical products |
2.3 |
Organic chemical products |
3.0 |
Cast iron and steel |
2.1 |
Cast iron and steel |
3.4 |
Source: Ministry of Economy of Spain
