SPAIN: Useful Info

Even though Spain lies at the crossroads of the Mediterranean, Europe and Africa, General Franco intentionally isolated the country from the international community as part of his policies during the post-Civil War dictatorship.

But in the 1950’s, it began to recover from the recession, helped with the rise in tourism and aid from the US.

After the death of General Franco in 1975, Spain’s authoritarian regime was transformed into a democratic government under the leadership of King Juan Carlos as the head of state.

The 1978 constitution stipulated respect for the linguistic and cultural diversity that is part of Spain’s national fiber. The country has 17 regions with each having their own directly elected authorities.

Quick Facts

Population: 43 million
Capital: Madrid
Area: 505,988 sq km (195,363 sq miles)
Major languages: Spanish (Castilian), Catalan, Euskera (Basque), Gallego (Galician)
Main exports: Transport equipment, agricultural products
Monetary unit: 1 Euro = 100 cents
GNI per capita: US $21,210

Economic Background:

Based on Spain’s GDP last year (valued at $558.3 billion, considered the seventh-largest OECD economy), 47% of the country’s economy is dependent on foreign trade. According to data collected, Spain’s trade exceeded in terms of exports. Total exports was valued at $113.7 billion, with Spain exporting to major countries like those in the EU (70.63$) and the U.S. (4.4%). Imports, on the other hand, was valued at $153.4 billion. The country’s main imports were petroleum, oilseeds, grains, aircraft, chemicals, machinery, transportation equipment, and fish, among others.

Spain is also committed to further opening up the Spanish market. Since 1986, the government has embarked on an wide-ranging liberalisation/privatisation programme. This radical scheme has resulted in a drastic reduction in Spain’s public sector borrowing requirement that has helped trim inflation. This trend continued on into the 90’s with the liberalisation of banking, telecommunication, and energy sectors as well as the deregulation of the labour market. These reforms has resulted in Spain enjoying good economic growth and job creation. Unemployment has decreased from 2.9 per cent in1995 to 15.9 per cent in 1999. This strong performance has strengthened Spain’s local currency, which has enabled the country to successfully peg the peseta to the Euro.

Spain’s main exports are, among others, automobiles, tourism, foodstuffs, fruit, power generation equipment, metals, minerals, petroleum and chemical products, electrical machinery, clothing, textiles, and footwear. These exports amounted to $113.7 billion of the country’s GDP, which is about 20 percent. Spain’s major export markets are Germany, France, United Kingdom, Italy, the United States, and Portugal. Spain’s exports are considered to be a strong foundation of its economy. The government realizes this fact especially because the country currently faces a trade deficit and these exports has helped make the national economy stronger.

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