Spain occupies 85%

of the Iberian

Peninsula, which it

shares with Portugal,

in southwest Europe.

location

HISTORY

The first to appear were the Iberians, a Libyan people,

who came from the south.

Agricultural Age:

Industrial Age:

Information Age:

Quick Facts

•Spain has the 8th largest economy in the world

•Spain has the 5th largest economy in Europe

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)

What Kind of Economic System Does Spain Have?

ECONOMIC SYSTEM

A Mixed Economy!!!

Why Does Spain Have a Mixed Economy?

MAJOR REASONS –

1 EXPORTS

2 TRADING

3 AGRICULTURE

4 CURRENCY

5 LABOUR FORCE

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

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

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.

GDP

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%

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

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)

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

POTENTIAL AREAS FOR BILATERAL COLLABORATION

IT

Infrastructure

Railways

Energy

Tourism & hospitality

Gracious

Thank You