Spain

Economic indicators

Spain has made great economic progress in recent decades, but still lags behind most of West European countries. Spain's economic growth has been accelerating since 2004, from 3.3% to 3.7% in 2007. FMI forecast is a little less optimistic for 2008, waiting for a growth rate of 2.7%. The fundamental challenges faced by Spain include further reduction in unemployment rate (estimated at 8.6% in 2006), reforming of labour laws, bringing down the inflation (estimated at 2.8% in 2007), and improving the per capita GDP (estimated at USD 29,200 in 2006). Also, the real-estate boom has made households to take heavy loans and thus created a real-estate bubble in the country. Over the last ten years, European structural funds granted to Spain have widely contributed to the economy's dynamism but will now falter due to addition of ten new EU members.

Main sectors of industry

Traditionally an agricultural country, Spain produces large crops of wheat, sugar beets, barley, tomatoes, olives, citrus fruit, grapes, and cork. Spain is the world's largest producer of olive oil and third largest producer of wine in the world. It is also Europe's largest producer of lemons, oranges, and strawberries. Agriculture contributes nearly 3.5% to the country’s GDP. The manufacturing industry has mainly developed in sectors like textile, food-processing, iron and steel, machinery and naval engineering. New sectors like electronics outsourcing, information technology, and telecommunications also provide high growth potential. Tourism is in full swing and is Spain's biggest source of income. Spain has become the world's second largest tourist destination, which stimulates the export of goods and services. The service sector contributes nearly 70% to the GDP. Spain has limited mineral resources.

Source: World Bank - World Development Indicators - last available data.

Sources of economic information

Statistical Office

Central Bank

Stock Exchange

Search Engines

Yahoo Espana
Icex
Buscopio
Gomera
Hispa Vista
Hotbot Spain
Ozu.es
Sharelook.es
Sol
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Wanadoo.es

Political outline

Main political parties

Though Spain has a multi-party system, but in reality it is a two-party dominant system where it is extremely difficulty for any other political party to achieve electoral success. Regional parties can be strong in the autonomous communities which make them essential for making of coalition governments. The two largest parties in the country are: PSOE (Spanish Socialist Workers' Party) – a democratic socialist party, second oldest, PP (People’s Party) – is the largest liberal conservative political party in Spain, The other important parties are:
- IU (United Left) - a coalition of parties around Communist Party of Spain (PCE);
- CiU (Convergence and Unity) - a conservative, nationalist party based in Catalonia, supports free market economy;
- PNV (Basque Nationalist Party) – a centre-right political party in the Basque Country.

Current political leaders

King: JUAN CARLOS I (since November 1975) – hereditary
President of the Government and Prime Minister: Jose Luis RODRIGUEZ ZAPATERO (since April 2004) - PSOE

Next election dates

Senate: March 2012
Congress of Deputies: March 2012

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