Inside Economy of Spain

Spain ranks 13th in the list of
world’s largest economies (nominal) apart from having one of the
strongest purchasing powers. With Madrid as its finance capital
and Euro as its currency, Spain has a GDP (nominal) of
more than $1.315 trillion. That amounts to a per capita of $30,689
on average, thanks to the 30 million labor force, the majority of which is
concentrated in the service sector. In Europe only, Spain is
the 5th largest economy, while in the Euro zone,
it is the fourth largest. In the United Nation’s Human Development
Index, Spain stands at the 25th position, while the World Bank ranks it
on the 28th tile for GDP per capita. This makes Spain a high-income
economy and on the number 10 of countries with the
highest quality of life. Import and Export Partners The main industries contributing
to the economy of Spain are pharmaceuticals, machinery, metals,
automobiles, textiles, chemicals, etc. The country’s main export
partners include France, Germany, Italy, U.K.,
U.S., and Portugal. Spain imports goods
like chemicals, fuels, foodstuff, medical instruments,
equipment, etc. from important partners that
include France, Germany, China, UK, Netherlands,
and Italy among others. Spain is a capitalist-mixed economy and
is a member of the following collectives: European Union World Trade Organization Organization for Economic
Co-operation and Development History of Recession 2007-2008 was a huge financial crisis and
pushed the economy of Spain into recession. This resulted in poor
macroeconomic performance. The country stayed in the
state of recession for longer even though it had gotten
affected much later in 2008. By 2012, more than one-fourth of the
country’s workforce was unemployed. Between 2009 and 2013, the Spanish
economy had fallen by 9%. Economic Recovery and Growth By 2014, Spain’s economy had
started recovering from the recession, and the trade
deficit was finally reversed. In 2013, the country
achieved a trade surplus after more than three
decades of the deficit. In the following years,
the surplus gained more strength, and the GDP
went up by 3.2% in 2015. This growth rate was unexpected
and unseen since 2007, easily beating the growth rate
of most European economies. Between 2013 and 2017, the unemployment
rate in Spain has gone done drastically. The actual rate is even lower as there are
unaccounted workers in the grey market or those earning through several different jobs
while still being listed as unemployed. The underground economy of
Spain, if accounted for, can actually add 20% more
to the actual Spanish GDP. Spain’s Economy in Recent Times Having a small GINI
coefficient, Spain has a bigger purchasing power than most
high-income European nations. The economy saw strong GDP growth in
2016, and the country is said to be growing at a rate that’s twice as fast
as the average of the whole Euro zone. It will be safe to say
that the experts are right in believing that
Spain is going to hold its position in the Euro zone as the fastest
growing major economy in the coming years.

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