Economy (Spain)
===============


     Overview:
         Spain has done well since joining the EC in 1986. In accordance with its
         accession treaty, Spain has almost wholly liberalized trade and capital
         markets. Foreign and domestic investment has spurred average growth of 4%
         per year. Beginning in 1989, Madrid implemented a tight monetary policy to
         fight inflation - around 7% in 1989 and 1990. As a result growth slowed to
         2.5% in 1991. Spanish policymakers remain concerned with inflation - still
         hovering at 6%. Government officials also are worried about 16%
         unemployment, although many people listed as unemployed work in the
         underground economy. Spanish economists believe that structural adjustments
         due to the ongoing integration of the European market are likely to lead to
         more displaced workers.
     GDP:
         purchasing power equivalent - $487.5 billion, per capita $12,400; real
         growth rate 2.5% (1991 est.)
     Inflation rate (consumer prices):
         5.9% (1991 est.)
     Unemployment rate:
         16.0% (1991 est.)
     Budget:
         revenues $111.0 billion; expenditures $115.9 billion, including capital
         expenditures of $20.8 billion (1991 est.)
     Exports:
         $60.1 billion (f.o.b., 1991)
       commodities:
         cars and trucks, semifinished manufactured goods, foodstuffs, machinery
       partners:
         EC 71.0%, US 4.9%, other developed countries 7.9%
     Imports:
         $93.1 billion (c.i.f., 1990)
       commodities:
         machinery, transport equipment, fuels, semifinished goods, foodstuffs,
         consumer goods, chemicals
       partners:
         EC 60.0%, US 8.0%, other developed countries 11.5%, Middle East 2.6%
     External debt:
         $45 billion (1991 est.)
     Industrial production:
         growth rate 2.0% (1991 est.)
     Electricity:
         46,589,000 kW capacity; 157,040 million kWh produced, 3,980 kWh per capita
         (1991)
     Industries:
         textiles and apparel (including footwear), food and beverages, metals and
         metal manufactures, chemicals, shipbuilding, automobiles, machine tools,
         tourism
     Agriculture:
         accounts for about 5% of GDP and 14% of labor force; major products - grain,
         vegetables, olives, wine grapes, sugar beets, citrus fruit, beef, pork,
         poultry, dairy; largely self-sufficient in food; fish catch of 1.4 million
         metric tons is among top 20 nations
     Illicit drugs:
         key European gateway country for Latin American cocaine entering the
         European market
     Economic aid:
         US commitments, including Ex-Im (FY70-87), $1.9 billion; Western (non-US)
         countries, ODA and OOF bilateral commitments (1970-79), $545.0 million; not
         currently a recipient