Economy - overview:
The Spanish economy boomed from 1986 to 1990, averaging 5% annual
growth. After a European-wide recession in the early 1990s, the
Spanish economy resumed moderate growth starting in 1994. Spain's
mixed capitalist economy supports a GDP that on a per capita basis
is 80% that of the four leading West European economies. The
center-right government of former President AZNAR successfully
worked to gain admission to the first group of countries launching
the European single currency (the euro) on 1 January 1999. The AZNAR
administration continued to advocate liberalization, privatization,
and deregulation of the economy and introduced some tax reforms to
that end. Unemployment fell steadily under the AZNAR administration
but remains high at 8.7%. Growth averaging 3% annually during
2003-06 was satisfactory given the background of a faltering
European economy. The Socialist president, RODRIGUEZ ZAPATERO, has
made mixed progress in carrying out key structural reforms, which
need to be accelerated and deepened to sustain Spain's strong
economic growth. Despite the economy's relative solid footing
significant downside risks remain, including Spain's continued loss
of competitiveness, the potential for a housing market collapse, the
country's changing demographic profile and a decline in EU
structural funds.
GDP (purchasing power parity):
$1.07 trillion (2006 est.)
GDP (official exchange rate):
$1.081 trillion (2006 est.)
GDP - real growth rate:
3.6% (2006 est.)
GDP - per capita (PPP):
$27,000 (2006 est.)
GDP - composition by sector: agriculture: 3.9% industry: 29.4% services: 66.7% (2006 est.)
Labor force: 21.77 million (2006 est.)
Labor force - by occupation: agriculture: 5.3% industry: 30.1% services: 64.6% (2004 est.)
Unemployment rate:
8.7% (2006 est.)
Population below poverty line:
19.8%