Detailed Review of Spain’s Economy
Since the 1980s, Spain has experienced very high growth and has had one of the most dynamic economies in Europe and, indeed, the world. However, despite the government’s interventions and austerity plans, the country is not managing to recover from the economic crisis of 2008, which heavily damaged the financial and real estate sectors. In 2014, Spain’s economy is project to grow by 1.2%
Spanish agriculture, which accounts for 3% of GDP, produces significant amounts of goods, being the largest producer of olive oil, lemons and strawberries in the world. The agricultural sector also produces wheat, barley, tomatoes, citrus fruits and grapes. At the industrial level, manufacture is in pole position: textiles, food, iron, steel and shipbuilding. That sector is the most important area of the Spanish economy, and tourism is the largest source of income for the country (second-placed global destination).
Spain has a negative trade balance, and international trade plays a significant part in the country’s overall activity. France is Spain’s primary customer (19% of exports): Spain trades mainly exchanges with many European Union countries.
Spain’s Economic Strengths:
- Spain is part of the EU.
- Good quality of life.
- Flexible economy for businesses.
Spain’s Economic Weaknesses:
- Not very productive workforce.
- Complex standards.
- Low economic competitiveness.
To attract FDIs, a non-discrimination and freedom of establishment law which does not differentiate between Spanish and foreign investors has been passed by the Government.