Spanish Economy Overview

Economía Española

Overview

• Located in Southwestern Europe, Spain has a high-income economy, ranking 14th in terms of GDP (nominal) in 2020.
• Mixed economy with a strong service sector, a prominent manufacturing industry, and a significant agricultural sector.

Post-Civil War Period (1939-1959)

• Autarky policy: Isolationism and self-sufficiency, leading to economic stagnation.
• National Institute of Industry (INI): State-owned company established in 1941 to promote industrial development.

Stabilization Plan (1959)

• Implemented to address economic crisis: inflation, balance of payments deficit, and lack of competitiveness.
• Devaluation of the peseta, liberalization of trade, and fiscal austerity measures.

Economic Boom (1960s-1970s)

• Rapid growth driven by tourism, foreign investment, and industrial development.
• Per capita GDP growth rate: 5.5% (1960-1973), one of the highest in Europe.

Crisis and Reforms (1970s-1980s)

• Oil price shocks, high inflation, and industrial decline.
• Reforms: labor market liberalization, privatization, and deregulation.

EU Membership and Euro Adoption (1986-1999)

• Entry into the European Community (now EU) in 1986.
• Adoption of the euro in 1999, replacing the peseta.

Current Economic Challenges

• High unemployment rates, especially among youth.
• Regional disparities in economic development.
• Slow economic growth and low productivity growth.
• Debt and deficit concerns.

Sectors of the Economy

• Services: 70% of GDP, driven by tourism, finance, and business services.
• Industry: 26% of GDP, including automotive, aerospace, and chemical industries.
• Agriculture: 2.5% of GDP, with significant production of olives, olive oil, and wine.

Learn about Spain's economy, from its post-Civil War period to its EU membership and current challenges. Understand the country's economic growth, sectors, and reforms.