Spain occupies 85% of the Iberian Peninsula in southwest Europe, which it shares with Portugal. Spain has a mixed economy, relying on exports, trade, agriculture, currency, and a large labor force. It has the 8th largest economy in the world and the 5th largest in Europe. Major exports include machinery, vehicles, foodstuffs, and pharmaceuticals to countries like France, Germany, Portugal, and Italy. The property and construction boom led to a recession when the bubble burst. Bilateral trade between India and Spain was over $5 billion in recent years.

2. Spain occupies 85%
of the Iberian
Peninsula, which it
shares with Portugal,
in southwest Europe.
location

3. HISTORY
The first to appear were the Iberians, a Libyan people,
who came from the south.
Agricultural Age:
Industrial Age:
Information Age:

4. Quick Facts
•Spain has the 8th largest economy in
the world
•Spain has the 5th largest economy in
Europe

5. introduction
Population :
47,042,984 (growth rate: 0.654%);
Land area: 192,819 sq mtr (499,401 sq km)
total area: 194,896 sq mtr (504,782 sq km)
National name: Reino de España
Capital and largest city : Madrid
Languages: Castilian Spanish 74% (official nationwide);
Catalan 17%,
Galician 7%,
Basque 2% (each official regionally)

8. What Kind of Economic System
Does Spain Have?

9. ECONOMIC SYSTEM
A Mixed Economy!!!

10. Why Does Spain Have a Mixed
Economy?

11. MAJOR REASONS –
1 EXPORTS
2 TRADING
3 AGRICULTURE
4 CURRENCY
5 LABOUR FORCE

12. ECONOMY
 GDP/PPP (2011 est.): $1.406 trillion; per capita $30,500.
 Real growth rate: -0.1%.
 Inflation: 2.9%.
 Unemployment: 26.3%.
 FDI Inflow: $27.7 billion
 Spain’s foreign trade deficit narrowed to € 2.19 billion

13. Property Boom & Burst
Property Development : more than Demand.
Laws
I. Non Inflation regulatory rent control Tax
II. 15% mortgage deductible from IT.
III. 40 years of repayment time.
200 % rise of property prices( 2000-07 )
Recession effect

14. Other Factors
‘Deed in liea deal’ by Banks for debt.
15.2% reduction in prices for properties.
Euro Effects trades as Exports turns
expensive.
Trade deficit kept rising – 77.5 bn (2009).
Ghost properties – Town of veldelz ,
1.1 bn euro: caudal petal central
airport.

15. GDP

17. Exports Imports
France 18.3% Germany 14.5%
Germany 10.6% France 11.1%
Portugal 8.7% Italy 7.4%
Italy 8% China 6.2%

18. TRADE
 The value of imported goods in Spain is $322.7
billion (2012-13), and the value of exported goods is
$303.8 billion (2012-13)
 Imported goods: machinery and equipment, fuels,
chemicals, semi finished goods, foodstuffs,
consumer goods, measuring and medical control
instruments
 Exported goods: machinery, motor vehicles,
foodstuffs, pharmaceuticals, medicines, other
consumer goods

19. Spanish debt crisis & EU
ECB’s longer term refinancing operations(LTRO)
backfired.
Fears that crisis in Spain can spread to the rest of
Europe.
“If there is a sinking here, even the first-class
passengers will drown”
 - Jose Manuel Garcia-Margallo (Spain’s
foreign minister)

20. INDIA-SPAIN ECONOMIC &
COMMERCIAL RELATIONS
Bilateral trade of $ 5.17 billion
Spain is 13th largest investor in India
Total Spanish investment in India is $820 million
Total Indian investment in Spain is $687 million

21. POTENTIAL AREAS FOR
BILATERAL COLLABORATION
IT
Infrastructure
Railways
Energy
Tourism & hospitality

22. Gracious
Thank You