INTERES Invest in Spain

Demographics

Spain has the fifth largest population in the European Union. It has a notably young population, bolstered by the sharp increase in immigration. The main figures are given in the table below.

Source: National Statistics Institute. Data at January 1, 2008 except Working population with data from Q4 of 2007.

Variation in working population by industry (%)

Source: National Statistics Institute. Q4 2007.

Foreigners resident in Spain by continent of origin

Source: Ministry of Labor and Social Affairs. Figures at December 31, 2007

Political Structure

Economy

Spain has the eighth largest economy in the world with an advanced economic model, in which the services sector and industry account for over 80% of GDP.

^*Aggregate average until February 2008

* In the year 2007 the State recorded a surplus of €13.5 billion which accounts for 1.3% of Spain's GDP (Bank of Spain)

Source: Eurostat, National Statistics Institute, Bank of Spain

Source: Eurostat 2007

Trade and investment

In recent years, the rapid growth in imports and exports has made Spain one of the most internationally-oriented countries in the world, with figures for Spanish foreign investment reaching $99,000 million in 2006.

Spain's main trading partners are the 25-nation EU Member States, accounting for 70.1% of total exports and 59.1% of imports, followed by the Latin American countries (4.9% of exports and 4.6% of imports), and the United States (4.2% of exports and 3.5% of imports).

Spain is one of the most active countries trading goods and services. With regards to the trading of goods, it is ranked 18th in the world as an exporter and 12th as an importer, while in the trading of services it occupies 6th place as an exporter and 10th place as an importer.

The Spanish share in global export and import of goods (Spanish exports/global exports) is 1.70% and 2.50% respectively. The Spanish share in global export and import of services stands at 3.80% and 2.90%.

The breakdown by industry of foreign trade is relatively diversified, as can be seen in the following table:

Breakdown of main exports and imports in 2007* (as % of total)

* Data available for January 2008

Source: Ministry of Industry, Tourism and Trade

With regard to investment, it is worth highlighting the increase in inward investment received since 1996. In recent years, Spain has been one of the main recipients of foreign direct investment. In 2006 it was ranked 16th in the world in terms of investment flows. In gross terms, FDI reached €13,245 million, corresponding to €9,524 million of productive investment and to €3,721 of portfolio investment.

Proof of how highly developed the Spanish economy is, is the fact that, since 1997, the outward investment flows have outstripped inward investment flows.

Spain is also a highly attractive country for the financial markets, as shown by the figures for portfolio investment (see chart below) which accounts for over 13% of the GDP. This is due to the dynamism and innovative nature of the Spanish financial system.

With the regard to the chart called “Foreign Investment in Spain” the data by the end of October 2006 is the following: Direct Investment 12.66; Portfolio Investment 164.57; Total 177.23 (in € billion)

Source: Bank of Spain

(*) Data available at December 2007
With regard to the graphic above the data by the end of December 2007 is the following: Direct Investment 43.35; Portfolio Investment 95.59;Total 138.94 (in € billion).

Infrastructure

Spain is ranked 3rd in the EU in terms of the number of high-capacity toll roads and highways and 2nd in terms of the number of kilometers of high-speed railway tracks. In addition, it boasts 49 airports and 53 international ports which, when combined with the country's geostrategic position, make Spain one of the leading hubs for passenger and goods transportation.

Of even greater importance is the Transportation Infrastructure Strategic Plan, with total investments of 248 billion projected for the 2005-2020 period.

The table below sets out some of the more noteworthy facts and figures relating to Spain's infrastructure:

For more information you can download the following document: