d by two columns representing the Pillars of Hercules, which
are the two promontories (Gibraltar and Ceuta) on either side of the
eastern end of the Strait of Gibraltar; the red scroll across the
two columns bears the imperial motto of "Plus Ultra" (further
beyond) referring to Spanish lands beyond Europe

Economy
Spain

Economy - overview:

The Spanish economy boomed from 1986 to 1990 averaging 5% annual
growth. After a European-wide recession in the early 1990s, the
Spanish economy resumed moderate growth starting in 1994. Spain's
mixed capitalist economy supports a GDP that on a per capita basis
is equal to that of the leading West European economies. The
center-right government of former President Jose Maria AZNAR
successfully worked to gain admission to the first group of
countries launching the European single currency (the euro) on 1
January 1999. The AZNAR administration continued to advocate
liberalization, privatization, and deregulation of the economy and
introduced some tax reforms to that end. Unemployment fell steadily
under the AZNAR administration but remains high at 7.6%. Growth
averaging more than 3% annually during 2003-07 was satisfactory
given the background of a faltering European economy. The Socialist
president, Jose Luis Rodriguez ZAPATERO, has made mixed progress in
carrying out key structural reforms, which need to be accelerated
and deepened to sustain Spain's economic growth. Despite the
economy's relative solid footing significant downside risks remain
including Spain's continued loss of competitiveness, the potential
for a housing market collapse, the country's changing demographic
profile, and a decline in EU structural funds.

GDP (purchasing power parity):

$1.361 trillion (2007 est.)

GDP (official exchange rate):

$1.439 trillion (2007 est.)

GDP - real growth rate:

3.8% (2007 est.)

GDP - per capita (PPP):

$33,600 (2007 est.)

GDP - composition by sector:

agriculture: 3.6%
industry: 30.2%
services: 66.1% (2007 est.)

Labor force:

22.19 million (2007 est.)

Labor force - by occupation:

agriculture: 5.3%
industry: 30.1%
services: 64.6% (2004 est.)

Unemployment rate:

8.3% (2007 est.)

Population below poverty line:

19.8% (2005)

Household income or consumption by percentage share:

lowest 10%: 2.6%
highest 10%: 26.6% (2000)

Distribution of family income - Gini index:

32 (2005)

Investment (gross fixed):