National economy of Spain - industries, GDP and prosperity level

The economy of Spain is ranked fifth place among all the countries of the European Union by nominal GDP. On the world arena, the country’s economy occupies a stable 12th position. It is worth noting that the country’s purchasing power is one of the strongest in the world. The economy of the country was especially developed, thanks to the sectors of medium technological level, among which are its automobile industry, the production of audio-visual equipment, industrial machinery and equipment, and products of the chemical and cosmetic industries. However, the statistics of one of the analytical companies shows that among the hundred most recognized global brands, there is not a single Spanish. Leaders of the domestic industry are the producers of the wine “Freixenet”, Chupa Chups, the energy company Repsol, the brand Zara, and the hotel chain “Sol Mella”.

About 2.5% of the country’s total population is engaged in agriculture. The main focus is on growing grapes for wine, citrus, olives (for conservation and production of olive oil). About 20% of the entire crop area has wheat cultivated on it and 60%, vegetables. On the rest of the territory is cultivated rice, almonds and tobacco. Spain also has a huge fishing fleet which is considered the largest in Europe. The country holds a leading position in the top ten countries for the extraction and processing of seafood and fish. Livestock breeding is also developing successfully. The annual production of cars, spare parts and accessories is 49 billion Euros, which is about 6% of the country’s total GDP. It is worth noting that the country ranks first in the world market for the production of commercial vehicles.

In terms of the number of tourists coming to the country, Spain ranks second in Europe, immediately after France. At the same time, inflation has in recent years caused a decline in tourism activity by 17%. Catalonia, the Balearic, and Canary Islands enjoy the highest demand of tourist activity in the country. On average, tourism gives the state about 80 billion Euros a year. About one and a half million locals are employed in this industry. At the state level, there is active support for the development of beach recreation. The banking system of Spain is highly valued in Europe. The amount of foreign exchange reserves is about 14 billion Euros. There is a high concentration of bank capital, but only a little more than 350 credit institutions can be found. The most expensive financial assets are the group “Banco Santander Central Hispano”. Copyright www.orangesmile.com

Machine-tool construction in Spain also makes a significant contribution to the economy. Most of its production is geared towards exportation. Thus, Spanish machines and industrial equipment are supplied to more than a hundred countries around the world. Over a century ago, metallurgical activity began to develop in Spain. The main assets are located in the northern regions where there are large deposits of iron ore and coal. Non-ferrous metallurgy is focused on the extraction of lead and zinc. One third of the world’s mercury is produced in Spain. Also, there is located the largest deposits of pyrite. The energy sector is directly dependent on imports. The amount of domestic oil can only meet 7% of the country’s needs. At the same time, the majority of Fuel and Energy Complex works on oil and gas (approximately 68%). This state of affairs gave the country an impetus for the development of wind power. Spain’s share of wind power is about 10% of the total world’s volume. The state plans to build about two thousand mega watt of new wind farm.

The labor market in Spain is one of the toughest in Europe. After labor reform was carried out in 2010, the dismissal procedure became simpler. The amount of severance pay was reduced by one-third, and the average wage was no longer defined. Now it directly depends on the degree of qualification of the employee, on the position held and on the capabilities of the organization in which the person works. To date, the level of official unemployment does not fall below 10%. The fight against this indicator is directly related to education. According to statistics, out of five million unemployed, about two million have no special training. The average wage is about 27,000 Euros per year, taxes inclusive. The GDP as of last year is 1,352 billion dollars, while the national debt per capita of Spain is just over 34 thousand dollars.