Economy of Spain information

Economy of Spain

Cuatro Torres Business Area in Madrid
Currency	Euro (EUR, €)
Fixed exchange rates	1 euro = 166.386 Spanish peseta
Fiscal year	Calendar year
Trade organisations	EU, WTO and OECD
Country group	Developed/Advanced[1] High-income economy[2]
Statistics
Population	48,592,909[3]
GDP	$1.647 trillion (nominal; 2023)[4] $2.516 trillion (PPP; 2023)[4]
GDP rank	15th (nominal; 2023) 15th (PPP; 2023)
GDP growth	5.5% (2022)[5] 2.5% (2023f)[5] 2.0% (2024f)[5]
GDP per capita	$33,090 (nominal; 2023)[4] $50,471 (PPP; 2023)[4]
GDP per capita rank	34th (nominal; 2023) 38th (PPP; 2023)
GDP by sector	agriculture: 2.9% industry: 22.5% services: 74.6% (2021)[6]
Inflation (CPI)	1.9% (June 2023)[7]
Population below poverty line	20.4% at risk of poverty or social exclusion (Eurostat, 2022)[8]
Gini coefficient	32.0 medium (2020, Eurostat)[9]
Human Development Index	0.911 very high (2022)[10] (27th) 0.796 high IHDI (38th) (2022)[10]
Labour force	23,312,310 (2021)[11] 67.0% employment rate (2018)[12]
Labour force by occupation	agriculture: 4.2% industry: 24.0% services: 71.7% (2009)[13]
Unemployment	11.6% (June 2023)[14] 27.9% youth unemployment (15 to 24 year-olds; June 2023)[15]
Average gross salary	€2,471 per month
Average net salary	€1,910 per month
Main industries	machinery electronics medical equipment chemicals motor vehicles clothing food processing tourism shipbuilding [16][17]
External
Exports	$533.8 billion (2019 est.)[13]
Export goods	Machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods
Main export partners	France 15.1%  Germany 11.3%  Italy 7.8%  Portugal 7.1%  United Kingdom 6.9%  United States 4.4% (2017)[13]
Imports	$463.1 billion (2019 est.)[13]
Import goods	Fuels, chemicals, semi-finished goods, foodstuffs, consumer goods, machinery and equipment, measuring and medical control instruments
Main import partners	Germany 14.2%  France 11.9%  China 6.9%  Italy 6.8%  Netherlands 5.1%  United Kingdom 4% (2017)[13]
FDI stock	$824.8 billion (31 December 2017 est.)[13] Abroad: $776.8 billion (31 December 2017 est.)[13]
Current account	$29.6 billion (2019 est.)[13]
Gross external debt	$2.094 trillion (31 December 2017 est.)[13]
Public finances
Government debt	116.1% of GDP (Q2 2022)[18] €1.475 trillion (Q2 2022)[19]
Budget balance	€35.2 billion deficit (2019)[20] −2.8% of GDP (2019)[20]
Revenues	39.1% of GDP (2019)[20]
Expenses	41.9% of GDP (2019)[20]
Economic aid	€35 billion from European Structural and Investment Funds (2007–2013)[21] €37.4 billion from European Structural and Investment Funds (2014–2020)[22]
Credit rating	Standard & Poor's:[23] A (Domestic) A (Foreign) AAA (T&C Assessment) Outlook: Positive[24] Moody's:[24] Baa1 Outlook: Stable Fitch:[24] A- Outlook: Positive Scope:[25] A- Outlook: Positive
Foreign reserves	$79.36 billion (November 2020 est.)[13]
All values, unless otherwise stated, are in US dollars.

The economy of Spain is a highly developed social market economy.^[26] It’s the world's 15th largest by nominal GDP and the sixth-largest in Europe. Spain is a member of the European Union and the eurozone, as well as the Organization for Economic Co-operation and Development and the World Trade Organization. In 2021, Spain was the twentieth-largest exporter in the world and the sixteenth-largest importer. Spain is listed 27th in the United Nations Human Development Index and 37th in GDP per capita by the World Bank. Some of the main areas of economic activity are the automotive industry, medical technology, chemicals, shipbuilding, tourism and the textile industry. Among OECD members, Spain has a highly efficient and strong social security system, which comprises roughly 23.2% of GDP.^[27][28][29]

Following the financial crisis of 2007–2008, the Spanish economy plunged into recession, entering a cycle of negative macroeconomic performance. Compared to the EU's and US's average, the Spanish economy entered recession later (the economy was still growing by 2008) but it stayed there longer. The economic boom of the 2000s was reversed, leaving over a quarter of Spain's workforce unemployed by 2012. In aggregated terms, the Spanish GDP contracted by almost 9% during the 2009–2013 period.^[30] The economic situation started improving by 2013–2014. By then, Spain managed to reverse the record trade deficit which had built up during the boom years.^[31] It attained a trade surplus in 2013, after three decades of running a trade deficit.^[31] The surplus kept strengthening during 2014 and 2015.^[32]

In 2015, the Spanish GDP grew by 3.2%: a rate not seen since 2007 and the last year before the world financial crisis struck.^[33] This growth rate was the highest among the larger EU economies that year.^[34] In just two years (2014–2015), the Spanish economy recovered 85% of the GDP lost during the 2009–2013 recession.^[35] This success led some international analysts to refer to Spain's current recovery as "the showcase for structural reform efforts".^[36] Strong GDP growth was registered also in 2016, with the country growing twice as fast as the eurozone average.^[37] In this regard, the Spanish economy was forecast to remain the best-performing major economy in the eurozone in 2017.^[38] Spain's unemployment rate fell substantially from 2013 to 2017. The real unemployment rate is much lower since there is an estimation of millions of people working in the grey market, people who count as unemployed or inactive yet still perform jobs.^[39] Although estimates of the hidden economy vary, the real Spanish GDP may be around 20% bigger as it’s assumed the underground economy of Spain moves annually 190 billion Euros (US$224 billion).^[40] Among high income European countries, only Italy and Greece are believed to have larger underground economies than Spain. Thus Spain may have higher purchasing power as well as a smaller gini coefficient^[41] than shown in official numbers. In 2012, the Spanish government officially requested a credit from the European Stability Mechanism to restructure its banking sector in the face of a financial crisis.^[42] The ESM approved up to €100 billion in assistance although, in the end, Spain only drew €41.3 billion. The ESM programme for Spain ended with the full repayment of the credit drawn 18 months later.^[43]

The 2020 pandemic hit the Spanish economy with more intensity than other countries, as tourism accounts for 5% of its GDP and that sector of the economy was halted worldwide. In the first quarter of 2023 it was announced that it had fully recovered from the downturn, its GDP reaching pre-pandemic levels.^[44]

In 2023, Spain's economy is expected to grow by 2.2%, slightly beating a preliminary estimate and bucking a downturn in the euro zone as a whole.^[45]