Analysis and Studies - Country Analysis
Spain: a look at the market
August 22nd 2022
Located in southern Europe, Spain occupies most of the Iberian Peninsula. It shares borders with Portugal on the west, with France and Andorra in the northeast, and on the south with Gibraltar and Morocco. The Meseta, a large central plateau half a mile above sea level, is its heartland. Traditional uses of the area include cattle grazing and grain cultivation.
Spain is one of the world’s most popular tourist destinations, and it is well known for its cities, monuments, and history. Some of its biggest cities are Madrid (6,204,829 ab.), Barcelona (5,233,638 ab.), Valencia (1,564,145 ab.), Seville (1,249,346 ab.) etc.
The country is the product of the various cultures that historically populated the area: among others, Romans, Arabs, Jews, Roma (Gypsies), Castilians, Catalonians, Lusitanians, Galicians, and Basques, have had an impact on the country’s culinary traditions, rituals, and significant contributions to its cultural heritage.
Before the final unification under the reign of Charles V in 1516, there was a very important step in which, for the first time, the basis for a united Spain was laid: the marriage between Isabella of Castile and Ferdinand of Aragon. With their union, Isabella and Ferdinand officially decreed the union of their two kingdoms. In these years, the Spanish colonial period started and it characterized its history for centuries.
On the 16th and 17th, the Spanish float ruled the seas and the country establish itself as the conquistadores of the world. With time, its unwillingness to embrace the industrial and commercial revolution caused the country to fall behind Britain, France, and Germany in political and economic importance. In the 20th century, the country suffered through a devastating civil war that ended in the twenty-year dictatorship of General Francisco Franco. From 1975, Spain went on the path of democratization and economic transformation. Composed of 17 autonomous communities and 2 autonomous cities, Spain is a parliamentary democracy and constitutional monarchy. It is a member of the European Union and the North American Treaty. Besides some ups and downs, Spain is a major economic force on the European continent, being the eurozone’s fourth-largest economy.
THE ECONOMY OF SPAIN
After 2008’s global crisis, the Spanish economy fell into recession failing to grow until 2013. Unemployment is still a big issue for the country, although it cut down compared to the past. In 2021, Spain’s GDP was a total of 1.43 trillion dollars, being the 14th economy in the world. The public sector, defense, education, human health, and social work activities will make up the majority of Spain's economy. Other important sectors are industry (16.1%), wholesale and retail commerce, transportation, lodging, and food services (19.7%), and public administration (20.5%). According to the Social Progress Index 2021 (published every year by the Social Progress Imperative, a non-profit organization that ranks countries according to social aspects such as access to basic human needs, general well-being, and opportunities), Spain is the 20th country in the world for living standards.
SPAIN IN INTERNATIONAL TRADE: IMPORT AND EXPORT
The majority of Spain's exports (61%) are for intra-EU commerce (France 16%, Germany 11%, and Italy 8%), while 8% and 5%, respectively, are sent outside the EU to the United Kingdom and the United States. In terms of imports, 57% come from EU nations (Germany 14%, France 11%, and Italy 7%), 9% from China outside the EU, and 4% from the US. In 2020, the top exports of Spain were cars ($32B), packaged medicaments ($11.6B), motor vehicles, parts and accessories ($9.14B), refined petroleum ($7.77B), and pig meat ($6.46B), exporting mostly to France ($47.6B), Germany ($34B), Portugal ($23.8B), Italy ($22.8B), and United Kingdom ($18.9B). Crude Petroleum ($15.8B), cars ($13.9B), motor vehicles; parts and accessories ($11B), packaged medicaments ($10.7B), and petroleum gas ($5.5B), were Spain’s biggest imports, mostly from countries like Germany ($41.2B), France ($33.9B), China ($30.3B), Italy ($22B), and Netherlands ($15.5B).
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