Nation at a Glance - Spain

History

Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World War I and II but suffered through a devastating civil war (1936-39). A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986) gave Spain a dynamic and rapidly growing economy and made it a global champion of freedom and human rights. More recently the government has focused on measures to reverse a severe economic recession that began in mid-2008. Austerity measures implemented to reduce a large budget deficit and reassure foreign investors have led to one of the highest unemployment rates in Europe. Spain assumed a nonpermanent seat on the UN Security Council for the 2015-16 term.

Location: Southwestern Europe, bordering the Mediterranean Sea, North Atlantic Ocean, Bay of Biscay, and Pyrenees Mountains; southwest of France

Border Countries: Andorra 63 km, France 646 km, Gibraltar 1.2 km, Portugal 1,224 km, Morocco (Ceuta) 8 km, Morocco (Melilla) 10.5 km

Total Area: 505,370 sq km Land: 498,980 sq km Water: 6,390 sq km

Climate: Temperate; clear, hot summers in interior, more moderate and cloudy along coast; cloudy, cold winters in interior, partly cloudy and cool along coast

Terrain: Large, flat to dissected plateau surrounded by rugged hills; Pyrenees Mountains in north

Natural resources: Coal, lignite, iron ore, copper, lead, zinc, uranium, tungsten, mercury, pyrites, magnesite, fluorspar, gypsum, sepiolite, kaolin, potash, hydropower, arable land

Land use: Agricultural land: 54.1% arable land 24.9%; permanent crops 9.1%; permanent pasture 20.1% Forest: 36.8% Other: 9.1% (2011 est.)

Ethnic groups: Composite of Mediterranean and Nordic types

Languages: Castilian Spanish (official nationwide) 74%, Catalan (official in Catalonia, the Balearic Islands, and the Valencian Community (where it is known as Valencian)) 17%, Galician (official in Galicia) 7%, Basque (official in the Basque Country and in the Basque-speaking area of Navarre) 2%, Aranese (official in the northwest corner of Catalonia (Vall d'Aran) along with Catalan; <5,000 speakers)

Religions: Roman Catholic 94%, Other 6%

Population: 48,563,476 (July 2016 est.)

Literacy: 98.1%; Male: 98.7%; Female: 97.5% (2015 est.)

Administrative divisions: 17 semi-autonomous communities (comunidades autonomas, singular - comunidad autonoma) and 2 autonomous cities* (ciudades autonomas, singular - ciudad autonoma); Andalucia; Aragon; Asturias; Canarias (Canary Islands); Cantabria; Castilla-La Mancha; Castilla-Leon; Cataluna (Castilian), Catalunya (Catalan), Catalonha (Aranese) [Catalonia]; Ceuta*; Comunidad Valenciana (Castilian), Comunitat Valenciana (Valencian) [Valencian Community]; Extremadura; Galicia; Illes Baleares (Balearic Islands); La Rioja; Madrid; Melilla*; Murcia; Navarra (Castilian), Nafarroa (Basque) [Navarre]; Pais Vasco (Castilian), Euskadi (Basque) [Basque Country]

Economy: After a prolonged recession that began in 2008 in the wake of the global financial crisis, Spain marked the fourth full year of positive economic growth in 2017, with economic activity surpassing its pre-crisis peak, largely because of increased private consumption. The financial crisis of 2008 broke 16 consecutive years of economic growth for Spain, leading to an economic contraction that lasted until late 2013. In that year, the government successfully shored up its struggling banking sector - heavily exposed to the collapse of Spain’s real estate boom - with the help of an EU-funded restructuring and recapitalization program. Until 2014, contraction in bank lending, fiscal austerity, and high unemployment constrained domestic consumption and investment. The unemployment rate rose from a low of about 8% in 2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 16.4% in 2017. High unemployment strained Spain's public finances, as spending on social benefits increased while tax revenues fell. Spain’s budget deficit peaked at 11.4% of GDP in 2010, but Spain gradually reduced the deficit to about 3.3% of GDP in 2017. Public debt has increased substantially – from 60.1% of GDP in 2010 to nearly 96.7% in 2017. Strong export growth helped bring Spain's current account into surplus in 2013 for the first time since 1986 and sustain Spain’s economic growth. Increasing labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have improved Spain’s export competitiveness and generated foreign investor interest in the economy, restoring FDI flows. In 2017, the Spanish Government’s minority status constrained its ability to implement controversial labor, pension, health care, tax, and education reforms. The European Commission expects the government to meet its 2017 budget deficit target and anticipates that expected economic growth in 2018 will help the government meet its deficit target. Spain’s borrowing costs are dramatically lower since their peak in mid-2012, and increased economic activity has generated a modest level of inflation, at 2% in 2017.

Agriculture - products: Grain, vegetables, olives, wine grapes, sugar beets, citrus; beef, pork, poultry, dairy products; fish

Industries: Textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay and refractory products, footwear, pharmaceuticals, medical equipment