THE SPANISH ECONOMY

The economy of Spain is a highly developed social market economy. It is the world’s fifteenth-largest by nominal GDP and the sixth-largest in Europe.

In 2021, Spain was the twentieth-largest exporter in the world and the sixteenth-largest importer. Spain is listed 27th in the United Nations Human Development Index and 37th in GDP per capita by the World Bank. According to The Economist in 2005, Spain had the world's 10th highest quality of life. Some of the main areas of economic activity are the automotive industry, medical technology, chemicals, shipbuilding, tourism, and the textile industry.

Following the financial crisis of 2007–2008, the Spanish economy plunged into recession, entering a cycle of negative macroeconomic performance. The economic boom of the 2000s was reversed, leaving over a quarter of Spain's workforce unemployed by 2012. In aggregated terms, the Spanish GDP contracted by almost 9% during the 2009–2013 period.

The economic situation started improving by 2013–2014. By then, the country managed to reverse the record trade deficit which had built up during the boom years. It attained a trade surplus in 2013, after three decades of running a trade deficit. The surplus kept strengthening during 2014 and 2015.

In 2015, the Spanish GDP grew by 3.2%, a rate not seen since 2007, the last year before the world financial crisis struck. This growth rate was the highest among the larger EU economies that year. In just two years (2014–2015), the Spanish economy recovered 85% of the GDP lost during the 2009–2013 recession. This success led some international analysts to refer to Spain's current recovery as "the showcase for structural reform efforts". Strong GDP growth was registered also in 2016, with the country growing twice as fast as the Eurozone average.

in this regard, the Spanish economy was forecast to remain the best-performing major economy in the Eurozone in 2017. Spain's unemployment rate fell substantially from 2013 to 2017. The real unemployment rate is much lower, as there is an estimation of millions of people working in the grey market, people who count as unemployed or inactive yet still perform jobs. Although estimates of the hidden economy vary, the real Spanish GDP may be around 20% bigger as it is estimated that the underground economy of Spain moves annually 190 billion Euros (US$224 billion).

Among high income European countries, only Italy and Greece are estimated to have larger underground economies than Spain. Meaning that Spain may have higher purchasing power as well as a smaller Gini coefficient than shown in official numbers. The latest forecasts from the OECD show Spain’s growth rate surpassing 2% for 2023, with just a slight dip expected in 2024. Economists at the policy forum highlight the resilience of Spain’s economy, which has outperformed expectations.

Spain’s economic prospects are on the rise, with the OECD forecasting it to outpace major economies.

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